Correlation Between Nordic Technology and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Nordic Technology and Schibsted ASA 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 Schibsted ASA 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 Schibsted ASA B, you can compare the effects of market volatilities on Nordic Technology and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Technology and Schibsted ASA.
Diversification Opportunities for Nordic Technology and Schibsted ASA
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordic and Schibsted is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Technology Group and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Nordic Technology i.e., Nordic Technology and Schibsted ASA go up and down completely randomly.
Pair Corralation between Nordic Technology and Schibsted ASA
Assuming the 90 days trading horizon Nordic Technology Group is expected to under-perform the Schibsted ASA. In addition to that, Nordic Technology is 2.53 times more volatile than Schibsted ASA B. It trades about -0.01 of its total potential returns per unit of risk. Schibsted ASA B is currently generating about 0.1 per unit of volatility. If you would invest 14,242 in Schibsted ASA B on August 30, 2024 and sell it today you would earn a total of 20,238 from holding Schibsted ASA B or generate 142.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Technology Group vs. Schibsted ASA B
Performance |
| Timeline |
| Nordic Technology |
| Schibsted ASA B |
Nordic Technology and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Technology and Schibsted ASA
The main advantage of trading using opposite Nordic Technology and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Technology position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Nordic Technology vs. Lea Bank ASA | Nordic Technology vs. Eidesvik Offshore ASA | Nordic Technology vs. Odfjell Technology | Nordic Technology vs. River Tech plc |
| Schibsted ASA vs. Lea Bank ASA | Schibsted ASA vs. Nidaros Sparebank | Schibsted ASA vs. Aasen Sparebank | Schibsted ASA vs. Austevoll Seafood ASA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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