Correlation Between Norwegian Air and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Norwegian Air and Accent Resources 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 Norwegian Air and Accent Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Norwegian Air Shuttle and Accent Resources NL, you can compare the effects of market volatilities on Norwegian Air and Accent Resources 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 Norwegian Air with a short position of Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norwegian Air and Accent Resources.
Diversification Opportunities for Norwegian Air and Accent Resources
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Norwegian and Accent is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Norwegian Air Shuttle and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources and Norwegian Air 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 Norwegian Air Shuttle are associated (or correlated) with Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Norwegian Air i.e., Norwegian Air and Accent Resources go up and down completely randomly.
Pair Corralation between Norwegian Air and Accent Resources
Assuming the 90 days horizon Norwegian Air is expected to generate 6.98 times less return on investment than Accent Resources. But when comparing it to its historical volatility, Norwegian Air Shuttle is 4.65 times less risky than Accent Resources. It trades about 0.13 of its potential returns per unit of risk. Accent Resources NL is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1.10 in Accent Resources NL on September 13, 2024 and sell it today you would earn a total of 0.60 from holding Accent Resources NL or generate 54.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Norwegian Air Shuttle vs. Accent Resources NL
Performance |
| Timeline |
| Norwegian Air Shuttle |
| Accent Resources |
Norwegian Air and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norwegian Air and Accent Resources
The main advantage of trading using opposite Norwegian Air and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norwegian Air position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Norwegian Air vs. Aena SME SA | Norwegian Air vs. Superior Plus Corp | Norwegian Air vs. SIVERS SEMICONDUCTORS AB | Norwegian Air vs. Norsk Hydro ASA |
| Accent Resources vs. FORWARD AIR P | Accent Resources vs. Merit Medical Systems | Accent Resources vs. Norwegian Air Shuttle | Accent Resources vs. Clearside Biomedical |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |