Correlation Between Nordic Technology and Horisont Energi
Can any of the company-specific risk be diversified away by investing in both Nordic Technology and Horisont Energi 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 Nordic Technology and Horisont Energi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Technology Group and Horisont Energi AS, you can compare the effects of market volatilities on Nordic Technology and Horisont Energi 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 Nordic Technology with a short position of Horisont Energi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Technology and Horisont Energi.
Diversification Opportunities for Nordic Technology and Horisont Energi
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nordic and Horisont is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Technology Group and Horisont Energi AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horisont Energi AS and Nordic Technology 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 Nordic Technology Group are associated (or correlated) with Horisont Energi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horisont Energi AS has no effect on the direction of Nordic Technology i.e., Nordic Technology and Horisont Energi go up and down completely randomly.
Pair Corralation between Nordic Technology and Horisont Energi
Assuming the 90 days trading horizon Nordic Technology Group is expected to generate 1.43 times more return on investment than Horisont Energi. However, Nordic Technology is 1.43 times more volatile than Horisont Energi AS. It trades about 0.01 of its potential returns per unit of risk. Horisont Energi AS is currently generating about -0.04 per unit of risk. If you would invest 330.00 in Nordic Technology Group on September 3, 2024 and sell it today you would lose (60.00) from holding Nordic Technology Group or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Technology Group vs. Horisont Energi AS
Performance |
| Timeline |
| Nordic Technology |
| Horisont Energi AS |
Nordic Technology and Horisont Energi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Technology and Horisont Energi
The main advantage of trading using opposite Nordic Technology and Horisont Energi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Technology position performs unexpectedly, Horisont Energi 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 Horisont Energi will offset losses from the drop in Horisont Energi's long position.| Nordic Technology vs. Nordic Halibut AS | Nordic Technology vs. Nordic Semiconductor ASA | Nordic Technology vs. Nordic Mining ASA | Nordic Technology vs. Nordic Aqua Partners |
| Horisont Energi vs. Melhus Sparebank | Horisont Energi vs. Austevoll Seafood ASA | Horisont Energi vs. Sea1 Offshore | Horisont Energi vs. Sunndal Sparebank |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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