Correlation Between NTG Nordic and Vivendi SE
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Vivendi SE 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 Vivendi SE 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 Vivendi SE, you can compare the effects of market volatilities on NTG Nordic and Vivendi SE 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 Vivendi SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Vivendi SE.
Diversification Opportunities for NTG Nordic and Vivendi SE
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NTG and Vivendi is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Vivendi SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivendi SE 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 Vivendi SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivendi SE has no effect on the direction of NTG Nordic i.e., NTG Nordic and Vivendi SE go up and down completely randomly.
Pair Corralation between NTG Nordic and Vivendi SE
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.78 times more return on investment than Vivendi SE. However, NTG Nordic Transport is 1.27 times less risky than Vivendi SE. It trades about -0.16 of its potential returns per unit of risk. Vivendi SE is currently generating about -0.21 per unit of risk. If you would invest 3,860 in NTG Nordic Transport on September 12, 2024 and sell it today you would lose (175.00) from holding NTG Nordic Transport or give up 4.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NTG Nordic Transport vs. Vivendi SE
Performance |
| Timeline |
| NTG Nordic Transport |
| Vivendi SE |
NTG Nordic and Vivendi SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Vivendi SE
The main advantage of trading using opposite NTG Nordic and Vivendi SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Vivendi SE 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 Vivendi SE will offset losses from the drop in Vivendi SE's long position.| NTG Nordic vs. Gold Road Resources | NTG Nordic vs. FORMPIPE SOFTWARE AB | NTG Nordic vs. GOLD ROAD RES | NTG Nordic vs. Broadcom |
| Vivendi SE vs. TRAINLINE PLC LS | Vivendi SE vs. AECOM TECHNOLOGY | Vivendi SE vs. Align Technology | Vivendi SE vs. Check Point Software |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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