Correlation Between NTG Nordic and BankIn Bredygt
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and BankIn Bredygt 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 BankIn Bredygt 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 BankIn Bredygt Klimaakt, you can compare the effects of market volatilities on NTG Nordic and BankIn Bredygt 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 BankIn Bredygt. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and BankIn Bredygt.
Diversification Opportunities for NTG Nordic and BankIn Bredygt
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NTG and BankIn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and BankIn Bredygt Klimaakt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankIn Bredygt Klimaakt 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 BankIn Bredygt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankIn Bredygt Klimaakt has no effect on the direction of NTG Nordic i.e., NTG Nordic and BankIn Bredygt go up and down completely randomly.
Pair Corralation between NTG Nordic and BankIn Bredygt
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the BankIn Bredygt. In addition to that, NTG Nordic is 2.28 times more volatile than BankIn Bredygt Klimaakt. It trades about -0.36 of its total potential returns per unit of risk. BankIn Bredygt Klimaakt is currently generating about 0.19 per unit of volatility. If you would invest 10,270 in BankIn Bredygt Klimaakt on October 19, 2024 and sell it today you would earn a total of 125.00 from holding BankIn Bredygt Klimaakt or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. BankIn Bredygt Klimaakt
Performance |
| Timeline |
| NTG Nordic Transport |
| BankIn Bredygt Klimaakt |
NTG Nordic and BankIn Bredygt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and BankIn Bredygt
The main advantage of trading using opposite NTG Nordic and BankIn Bredygt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, BankIn Bredygt 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 BankIn Bredygt will offset losses from the drop in BankIn Bredygt's long position.| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT AS |
| BankIn Bredygt vs. North Media AS | BankIn Bredygt vs. Djurslands Bank | BankIn Bredygt vs. Laan Spar Bank | BankIn Bredygt vs. Kreditbanken AS |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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