Correlation Between NTG Nordic and Danske Invest
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By analyzing existing cross correlation between NTG Nordic Transport and Danske Invest , you can compare the effects of market volatilities on NTG Nordic and Danske Invest 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 Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Danske Invest.
Diversification Opportunities for NTG Nordic and Danske Invest
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NTG and Danske is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Danske Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest 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 Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest has no effect on the direction of NTG Nordic i.e., NTG Nordic and Danske Invest go up and down completely randomly.
Pair Corralation between NTG Nordic and Danske Invest
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Danske Invest. In addition to that, NTG Nordic is 12.03 times more volatile than Danske Invest . It trades about -0.09 of its total potential returns per unit of risk. Danske Invest is currently generating about 0.09 per unit of volatility. If you would invest 8,721 in Danske Invest on August 29, 2024 and sell it today you would earn a total of 28.00 from holding Danske Invest or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NTG Nordic Transport vs. Danske Invest
Performance |
| Timeline |
| NTG Nordic Transport |
| Danske Invest |
NTG Nordic and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Danske Invest
The main advantage of trading using opposite NTG Nordic and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT AS |
| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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