Correlation Between NTG Nordic and MARKET VECTR
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and MARKET VECTR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining NTG Nordic and MARKET VECTR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and MARKET VECTR RETAIL, you can compare the effects of market volatilities on NTG Nordic and MARKET VECTR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in NTG Nordic with a short position of MARKET VECTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and MARKET VECTR.
Diversification Opportunities for NTG Nordic and MARKET VECTR
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NTG and MARKET is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and MARKET VECTR RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKET VECTR RETAIL and NTG Nordic is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on NTG Nordic Transport are associated (or correlated) with MARKET VECTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKET VECTR RETAIL has no effect on the direction of NTG Nordic i.e., NTG Nordic and MARKET VECTR go up and down completely randomly.
Pair Corralation between NTG Nordic and MARKET VECTR
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the MARKET VECTR. In addition to that, NTG Nordic is 2.29 times more volatile than MARKET VECTR RETAIL. It trades about -0.49 of its total potential returns per unit of risk. MARKET VECTR RETAIL is currently generating about -0.32 per unit of volatility. If you would invest 22,670 in MARKET VECTR RETAIL on October 11, 2024 and sell it today you would lose (740.00) from holding MARKET VECTR RETAIL or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. MARKET VECTR RETAIL
Performance |
| Timeline |
| NTG Nordic Transport |
| MARKET VECTR RETAIL |
NTG Nordic and MARKET VECTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and MARKET VECTR
The main advantage of trading using opposite NTG Nordic and MARKET VECTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, MARKET VECTR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MARKET VECTR will offset losses from the drop in MARKET VECTR's long position.| NTG Nordic vs. The Hongkong and | NTG Nordic vs. Pebblebrook Hotel Trust | NTG Nordic vs. Choice Hotels International | NTG Nordic vs. MHP Hotel AG |
| MARKET VECTR vs. Waste Management | MARKET VECTR vs. USWE SPORTS AB | MARKET VECTR vs. Transport International Holdings | MARKET VECTR vs. NTG Nordic Transport |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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