Correlation Between Nordic Technology and Shelf Drilling
Can any of the company-specific risk be diversified away by investing in both Nordic Technology and Shelf Drilling 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 Shelf Drilling 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 Shelf Drilling, you can compare the effects of market volatilities on Nordic Technology and Shelf Drilling 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 Shelf Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Technology and Shelf Drilling.
Diversification Opportunities for Nordic Technology and Shelf Drilling
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and Shelf is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Technology Group and Shelf Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelf Drilling 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 Shelf Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelf Drilling has no effect on the direction of Nordic Technology i.e., Nordic Technology and Shelf Drilling go up and down completely randomly.
Pair Corralation between Nordic Technology and Shelf Drilling
Assuming the 90 days trading horizon Nordic Technology Group is expected to generate 0.43 times more return on investment than Shelf Drilling. However, Nordic Technology Group is 2.31 times less risky than Shelf Drilling. It trades about 0.17 of its potential returns per unit of risk. Shelf Drilling is currently generating about -0.51 per unit of risk. If you would invest 250.00 in Nordic Technology Group on August 29, 2024 and sell it today you would earn a total of 20.00 from holding Nordic Technology Group or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Technology Group vs. Shelf Drilling
Performance |
| Timeline |
| Nordic Technology |
| Shelf Drilling |
Nordic Technology and Shelf Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Technology and Shelf Drilling
The main advantage of trading using opposite Nordic Technology and Shelf Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Technology position performs unexpectedly, Shelf Drilling 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 Shelf Drilling will offset losses from the drop in Shelf Drilling's long position.| Nordic Technology vs. Next Biometrics Group | Nordic Technology vs. Elkem ASA | Nordic Technology vs. Vow ASA | Nordic Technology vs. North Energy ASA |
| Shelf Drilling vs. BW Offshore | Shelf Drilling vs. Elkem ASA | Shelf Drilling vs. Solstad Offsho | Shelf Drilling vs. Arcticzymes Technologies 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |