Correlation Between Nordic Unmanned and Nordic Mining
Can any of the company-specific risk be diversified away by investing in both Nordic Unmanned and Nordic Mining 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 Unmanned and Nordic Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Unmanned As and Nordic Mining ASA, you can compare the effects of market volatilities on Nordic Unmanned and Nordic Mining 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 Unmanned with a short position of Nordic Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Unmanned and Nordic Mining.
Diversification Opportunities for Nordic Unmanned and Nordic Mining
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordic and Nordic is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Unmanned As and Nordic Mining ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Mining ASA and Nordic Unmanned 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 Unmanned As are associated (or correlated) with Nordic Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Mining ASA has no effect on the direction of Nordic Unmanned i.e., Nordic Unmanned and Nordic Mining go up and down completely randomly.
Pair Corralation between Nordic Unmanned and Nordic Mining
Assuming the 90 days trading horizon Nordic Unmanned As is expected to under-perform the Nordic Mining. In addition to that, Nordic Unmanned is 3.22 times more volatile than Nordic Mining ASA. It trades about -0.13 of its total potential returns per unit of risk. Nordic Mining ASA is currently generating about 0.01 per unit of volatility. If you would invest 2,500 in Nordic Mining ASA on October 9, 2024 and sell it today you would lose (1.00) from holding Nordic Mining ASA or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Unmanned As vs. Nordic Mining ASA
Performance |
| Timeline |
| Nordic Unmanned As |
| Nordic Mining ASA |
Nordic Unmanned and Nordic Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Unmanned and Nordic Mining
The main advantage of trading using opposite Nordic Unmanned and Nordic Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Unmanned position performs unexpectedly, Nordic Mining 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 Nordic Mining will offset losses from the drop in Nordic Mining's long position.| Nordic Unmanned vs. Proximar Seafood AS | Nordic Unmanned vs. Odfjell Drilling | Nordic Unmanned vs. Lery Seafood Group | Nordic Unmanned vs. SpareBank 1 stlandet |
| Nordic Mining vs. Kongsberg Gruppen ASA | Nordic Mining vs. Holand og Setskog | Nordic Mining vs. Elkem ASA | Nordic Mining vs. DNB NOR KAPFORV |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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