Correlation Between NTG Nordic and Investin Optimal
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Investin Optimal 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 Investin Optimal 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 Investin Optimal Stabil, you can compare the effects of market volatilities on NTG Nordic and Investin Optimal 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 Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Investin Optimal.
Diversification Opportunities for NTG Nordic and Investin Optimal
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NTG and Investin is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Investin Optimal Stabil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Stabil 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 Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Stabil has no effect on the direction of NTG Nordic i.e., NTG Nordic and Investin Optimal go up and down completely randomly.
Pair Corralation between NTG Nordic and Investin Optimal
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Investin Optimal. In addition to that, NTG Nordic is 5.04 times more volatile than Investin Optimal Stabil. It trades about -0.46 of its total potential returns per unit of risk. Investin Optimal Stabil is currently generating about -0.05 per unit of volatility. If you would invest 14,858 in Investin Optimal Stabil on September 24, 2024 and sell it today you would lose (30.00) from holding Investin Optimal Stabil or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NTG Nordic Transport vs. Investin Optimal Stabil
Performance |
| Timeline |
| NTG Nordic Transport |
| Investin Optimal Stabil |
NTG Nordic and Investin Optimal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Investin Optimal
The main advantage of trading using opposite NTG Nordic and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.| NTG Nordic vs. Orsted AS | NTG Nordic vs. Danske Bank AS | NTG Nordic vs. Bavarian Nordic | NTG Nordic vs. DSV Panalpina AS |
| Investin Optimal vs. Fynske Bank AS | Investin Optimal vs. NTG Nordic Transport | Investin Optimal vs. PARKEN Sport Entertainment | Investin Optimal vs. Jyske Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |