Correlation Between Nordic Semiconductor and Acm Research
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Acm Research 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 Nordic Semiconductor and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Acm Research, you can compare the effects of market volatilities on Nordic Semiconductor and Acm Research 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 Nordic Semiconductor with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Acm Research.
Diversification Opportunities for Nordic Semiconductor and Acm Research
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordic and Acm is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and Nordic Semiconductor 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 Nordic Semiconductor ASA are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Acm Research go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Acm Research
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 0.94 times more return on investment than Acm Research. However, Nordic Semiconductor ASA is 1.06 times less risky than Acm Research. It trades about 0.13 of its potential returns per unit of risk. Acm Research is currently generating about -0.18 per unit of risk. If you would invest 905.00 in Nordic Semiconductor ASA on August 30, 2024 and sell it today you would earn a total of 81.00 from holding Nordic Semiconductor ASA or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Acm Research
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Acm Research |
Nordic Semiconductor and Acm Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Acm Research
The main advantage of trading using opposite Nordic Semiconductor and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.| Nordic Semiconductor vs. NVIDIA | Nordic Semiconductor vs. Intel | Nordic Semiconductor vs. Taiwan Semiconductor Manufacturing | Nordic Semiconductor vs. Marvell Technology Group |
| Acm Research vs. First Solar | Acm Research vs. Sunrun Inc | Acm Research vs. Canadian Solar | Acm Research vs. SolarEdge Technologies |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |