Correlation Between Norwegian Air and MINING PROJECTS
Can any of the company-specific risk be diversified away by investing in both Norwegian Air and MINING PROJECTS 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 MINING PROJECTS 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 MINING PROJECTS GRP, you can compare the effects of market volatilities on Norwegian Air and MINING PROJECTS 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 MINING PROJECTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norwegian Air and MINING PROJECTS.
Diversification Opportunities for Norwegian Air and MINING PROJECTS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Norwegian and MINING is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Norwegian Air Shuttle and MINING PROJECTS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINING PROJECTS GRP 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 MINING PROJECTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINING PROJECTS GRP has no effect on the direction of Norwegian Air i.e., Norwegian Air and MINING PROJECTS go up and down completely randomly.
Pair Corralation between Norwegian Air and MINING PROJECTS
Assuming the 90 days horizon Norwegian Air Shuttle is expected to generate 0.68 times more return on investment than MINING PROJECTS. However, Norwegian Air Shuttle is 1.48 times less risky than MINING PROJECTS. It trades about 0.21 of its potential returns per unit of risk. MINING PROJECTS GRP is currently generating about -0.04 per unit of risk. If you would invest 85.00 in Norwegian Air Shuttle on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Norwegian Air Shuttle or generate 12.94% 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. MINING PROJECTS GRP
Performance |
| Timeline |
| Norwegian Air Shuttle |
| MINING PROJECTS GRP |
Norwegian Air and MINING PROJECTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norwegian Air and MINING PROJECTS
The main advantage of trading using opposite Norwegian Air and MINING PROJECTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norwegian Air position performs unexpectedly, MINING PROJECTS 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 MINING PROJECTS will offset losses from the drop in MINING PROJECTS's long position.| Norwegian Air vs. SHIP HEALTHCARE HLDGINC | Norwegian Air vs. GALENA MINING LTD | Norwegian Air vs. Tianjin Capital Environmental | Norwegian Air vs. BlueScope Steel Limited |
| MINING PROJECTS vs. Norwegian Air Shuttle | MINING PROJECTS vs. HF SINCLAIR P | MINING PROJECTS vs. Mitsui Chemicals | MINING PROJECTS vs. Corsair Gaming |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |