Correlation Between NTG Nordic and Sporttotal
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Sporttotal 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 Sporttotal 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 Sporttotal AG, you can compare the effects of market volatilities on NTG Nordic and Sporttotal 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 Sporttotal. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Sporttotal.
Diversification Opportunities for NTG Nordic and Sporttotal
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NTG and Sporttotal is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Sporttotal AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporttotal AG 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 Sporttotal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporttotal AG has no effect on the direction of NTG Nordic i.e., NTG Nordic and Sporttotal go up and down completely randomly.
Pair Corralation between NTG Nordic and Sporttotal
Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.68 times more return on investment than Sporttotal. However, NTG Nordic Transport is 1.47 times less risky than Sporttotal. It trades about 0.01 of its potential returns per unit of risk. Sporttotal AG is currently generating about -0.02 per unit of risk. If you would invest 3,925 in NTG Nordic Transport on September 1, 2024 and sell it today you would lose (95.00) from holding NTG Nordic Transport or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. Sporttotal AG
Performance |
| Timeline |
| NTG Nordic Transport |
| Sporttotal AG |
NTG Nordic and Sporttotal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Sporttotal
The main advantage of trading using opposite NTG Nordic and Sporttotal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Sporttotal 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 Sporttotal will offset losses from the drop in Sporttotal's long position.| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI Holdings | NTG Nordic vs. Origin Agritech | NTG Nordic vs. SIVERS SEMICONDUCTORS AB |
| Sporttotal vs. SIVERS SEMICONDUCTORS AB | Sporttotal vs. Darden Restaurants | Sporttotal vs. Reliance Steel Aluminum | Sporttotal vs. Q2M Managementberatung AG |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |