Correlation Between NTG Nordic and Dataproces Group
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Dataproces Group 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 Dataproces Group 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 Dataproces Group AS, you can compare the effects of market volatilities on NTG Nordic and Dataproces Group 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 Dataproces Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Dataproces Group.
Diversification Opportunities for NTG Nordic and Dataproces Group
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NTG and Dataproces is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Dataproces Group AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataproces Group 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 Dataproces Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataproces Group has no effect on the direction of NTG Nordic i.e., NTG Nordic and Dataproces Group go up and down completely randomly.
Pair Corralation between NTG Nordic and Dataproces Group
Assuming the 90 days trading horizon NTG Nordic is expected to generate 16.55 times less return on investment than Dataproces Group. But when comparing it to its historical volatility, NTG Nordic Transport is 1.52 times less risky than Dataproces Group. It trades about 0.01 of its potential returns per unit of risk. Dataproces Group AS is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Dataproces Group AS on September 19, 2024 and sell it today you would earn a total of 391.00 from holding Dataproces Group AS or generate 191.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. Dataproces Group AS
Performance |
| Timeline |
| NTG Nordic Transport |
| Dataproces Group |
NTG Nordic and Dataproces Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Dataproces Group
The main advantage of trading using opposite NTG Nordic and Dataproces Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Dataproces Group 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 Dataproces Group will offset losses from the drop in Dataproces Group's long position.| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT AS |
| Dataproces Group vs. GN Store Nord | Dataproces Group vs. Ambu AS | Dataproces Group vs. ROCKWOOL International AS | Dataproces Group vs. Genmab 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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