Correlation Between NTG Nordic and Ringkjoebing Landbobank
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Ringkjoebing Landbobank 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 Ringkjoebing Landbobank 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 Ringkjoebing Landbobank AS, you can compare the effects of market volatilities on NTG Nordic and Ringkjoebing Landbobank 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 Ringkjoebing Landbobank. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Ringkjoebing Landbobank.
Diversification Opportunities for NTG Nordic and Ringkjoebing Landbobank
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NTG and Ringkjoebing is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Ringkjoebing Landbobank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ringkjoebing Landbobank 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 Ringkjoebing Landbobank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ringkjoebing Landbobank has no effect on the direction of NTG Nordic i.e., NTG Nordic and Ringkjoebing Landbobank go up and down completely randomly.
Pair Corralation between NTG Nordic and Ringkjoebing Landbobank
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Ringkjoebing Landbobank. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 1.16 times less risky than Ringkjoebing Landbobank. The stock trades about -0.52 of its potential returns per unit of risk. The Ringkjoebing Landbobank AS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 116,000 in Ringkjoebing Landbobank AS on September 19, 2024 and sell it today you would earn a total of 2,300 from holding Ringkjoebing Landbobank AS or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NTG Nordic Transport vs. Ringkjoebing Landbobank AS
Performance |
| Timeline |
| NTG Nordic Transport |
| Ringkjoebing Landbobank |
NTG Nordic and Ringkjoebing Landbobank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Ringkjoebing Landbobank
The main advantage of trading using opposite NTG Nordic and Ringkjoebing Landbobank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Ringkjoebing Landbobank 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 Ringkjoebing Landbobank will offset losses from the drop in Ringkjoebing Landbobank's long position.| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT AS |
| Ringkjoebing Landbobank vs. FLSmidth Co | Ringkjoebing Landbobank vs. Danske Bank AS | Ringkjoebing Landbobank vs. ISS AS | Ringkjoebing Landbobank vs. DSV Panalpina 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |