Correlation Between Nordic Technology and Sogn Sparebank
Can any of the company-specific risk be diversified away by investing in both Nordic Technology and Sogn Sparebank 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 Sogn Sparebank 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 Sogn Sparebank, you can compare the effects of market volatilities on Nordic Technology and Sogn Sparebank 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 Sogn Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Technology and Sogn Sparebank.
Diversification Opportunities for Nordic Technology and Sogn Sparebank
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordic and Sogn is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Technology Group and Sogn Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sogn Sparebank 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 Sogn Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sogn Sparebank has no effect on the direction of Nordic Technology i.e., Nordic Technology and Sogn Sparebank go up and down completely randomly.
Pair Corralation between Nordic Technology and Sogn Sparebank
Assuming the 90 days trading horizon Nordic Technology Group is expected to under-perform the Sogn Sparebank. But the stock apears to be less risky and, when comparing its historical volatility, Nordic Technology Group is 4.23 times less risky than Sogn Sparebank. The stock trades about -0.13 of its potential returns per unit of risk. The Sogn Sparebank is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 22,750 in Sogn Sparebank on September 1, 2024 and sell it today you would earn a total of 3,645 from holding Sogn Sparebank or generate 16.02% 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. Sogn Sparebank
Performance |
| Timeline |
| Nordic Technology |
| Sogn Sparebank |
Nordic Technology and Sogn Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Technology and Sogn Sparebank
The main advantage of trading using opposite Nordic Technology and Sogn Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Technology position performs unexpectedly, Sogn Sparebank 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 Sogn Sparebank will offset losses from the drop in Sogn Sparebank's long position.| Nordic Technology vs. Grieg Seafood ASA | Nordic Technology vs. Aasen Sparebank | Nordic Technology vs. Dolphin Drilling AS | Nordic Technology vs. Helgeland Sparebank |
| Sogn Sparebank vs. Sparebanken Sor | Sogn Sparebank vs. SpareBank 1 stlandet | Sogn Sparebank vs. Holand og Setskog | Sogn Sparebank vs. Sparebank 1 Ringerike |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |