Correlation Between Nordic Semiconductor and Digital Health
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Digital Health 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 Digital Health 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 Digital Health Acquisition, you can compare the effects of market volatilities on Nordic Semiconductor and Digital Health 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 Digital Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Digital Health.
Diversification Opportunities for Nordic Semiconductor and Digital Health
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and Digital is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Digital Health Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Health Acqui 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 Digital Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Health Acqui has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Digital Health go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Digital Health
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the Digital Health. In addition to that, Nordic Semiconductor is 1.19 times more volatile than Digital Health Acquisition. It trades about 0.0 of its total potential returns per unit of risk. Digital Health Acquisition is currently generating about 0.04 per unit of volatility. If you would invest 1,164 in Digital Health Acquisition on August 30, 2024 and sell it today you would earn a total of 328.00 from holding Digital Health Acquisition or generate 28.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.36% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Digital Health Acquisition
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Digital Health Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nordic Semiconductor and Digital Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Digital Health
The main advantage of trading using opposite Nordic Semiconductor and Digital Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Digital Health 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 Digital Health will offset losses from the drop in Digital Health's long position.| Nordic Semiconductor vs. NVIDIA | Nordic Semiconductor vs. Intel | Nordic Semiconductor vs. Taiwan Semiconductor Manufacturing | Nordic Semiconductor vs. Marvell Technology Group |
| Digital Health vs. Chester Mining | Digital Health vs. Kaltura | Digital Health vs. Uranium Energy Corp | Digital Health vs. Sphere Entertainment Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |