Correlation Between NTG Nordic and Accunia Inv
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Accunia Inv 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 Accunia Inv 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 Accunia Inv European, you can compare the effects of market volatilities on NTG Nordic and Accunia Inv 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 Accunia Inv. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Accunia Inv.
Diversification Opportunities for NTG Nordic and Accunia Inv
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NTG and Accunia is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Accunia Inv European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accunia Inv European 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 Accunia Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accunia Inv European has no effect on the direction of NTG Nordic i.e., NTG Nordic and Accunia Inv go up and down completely randomly.
Pair Corralation between NTG Nordic and Accunia Inv
Assuming the 90 days trading horizon NTG Nordic is expected to generate 1.47 times less return on investment than Accunia Inv. In addition to that, NTG Nordic is 9.08 times more volatile than Accunia Inv European. It trades about 0.01 of its total potential returns per unit of risk. Accunia Inv European is currently generating about 0.09 per unit of volatility. If you would invest 98,500 in Accunia Inv European on September 3, 2024 and sell it today you would earn a total of 3,360 from holding Accunia Inv European or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
NTG Nordic Transport vs. Accunia Inv European
Performance |
| Timeline |
| NTG Nordic Transport |
| Accunia Inv European |
NTG Nordic and Accunia Inv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Accunia Inv
The main advantage of trading using opposite NTG Nordic and Accunia Inv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Accunia Inv 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 Accunia Inv will offset losses from the drop in Accunia Inv's long position.| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT AS |
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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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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