Correlation Between Nordic Semiconductor and Cyberlux Corp
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Cyberlux Corp 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 Cyberlux Corp 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 Cyberlux Corp, you can compare the effects of market volatilities on Nordic Semiconductor and Cyberlux Corp 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 Cyberlux Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Cyberlux Corp.
Diversification Opportunities for Nordic Semiconductor and Cyberlux Corp
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordic and Cyberlux is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Cyberlux Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlux Corp 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 Cyberlux Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlux Corp has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Cyberlux Corp go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Cyberlux Corp
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the Cyberlux Corp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nordic Semiconductor ASA is 16.85 times less risky than Cyberlux Corp. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Cyberlux Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.23 in Cyberlux Corp on August 29, 2024 and sell it today you would earn a total of 0.44 from holding Cyberlux Corp or generate 191.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Cyberlux Corp
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Cyberlux Corp |
Nordic Semiconductor and Cyberlux Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Cyberlux Corp
The main advantage of trading using opposite Nordic Semiconductor and Cyberlux Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Cyberlux Corp 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 Cyberlux Corp will offset losses from the drop in Cyberlux Corp's long position.| Nordic Semiconductor vs. NVIDIA | Nordic Semiconductor vs. Intel | Nordic Semiconductor vs. Taiwan Semiconductor Manufacturing | Nordic Semiconductor vs. Marvell Technology Group |
| Cyberlux Corp vs. Nano Labs | Cyberlux Corp vs. Wisekey International Holding | Cyberlux Corp vs. Peraso Inc | Cyberlux Corp vs. GSI Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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