Correlation Between Nordic Semiconductor and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Cedar Realty 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 Cedar Realty 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 Cedar Realty Trust, you can compare the effects of market volatilities on Nordic Semiconductor and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Cedar Realty.
Diversification Opportunities for Nordic Semiconductor and Cedar Realty
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordic and Cedar is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Cedar Realty go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Cedar Realty
Assuming the 90 days horizon Nordic Semiconductor is expected to generate 1.98 times less return on investment than Cedar Realty. In addition to that, Nordic Semiconductor is 1.78 times more volatile than Cedar Realty Trust. It trades about 0.01 of its total potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.05 per unit of volatility. If you would invest 1,298 in Cedar Realty Trust on August 28, 2024 and sell it today you would earn a total of 322.00 from holding Cedar Realty Trust or generate 24.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Cedar Realty Trust
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Cedar Realty Trust |
Nordic Semiconductor and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Cedar Realty
The main advantage of trading using opposite Nordic Semiconductor and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Nordic Semiconductor vs. NVIDIA | Nordic Semiconductor vs. Intel | Nordic Semiconductor vs. Taiwan Semiconductor Manufacturing | Nordic Semiconductor vs. Marvell Technology Group |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company | Cedar Realty vs. Simon Property Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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