Correlation Between NORWEGIAN AIR and EAT WELL
Can any of the company-specific risk be diversified away by investing in both NORWEGIAN AIR and EAT WELL 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 EAT WELL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORWEGIAN AIR SHUT and EAT WELL INVESTMENT, you can compare the effects of market volatilities on NORWEGIAN AIR and EAT WELL 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 EAT WELL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORWEGIAN AIR and EAT WELL.
Diversification Opportunities for NORWEGIAN AIR and EAT WELL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORWEGIAN and EAT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NORWEGIAN AIR SHUT and EAT WELL INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAT WELL INVESTMENT 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 SHUT are associated (or correlated) with EAT WELL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAT WELL INVESTMENT has no effect on the direction of NORWEGIAN AIR i.e., NORWEGIAN AIR and EAT WELL go up and down completely randomly.
Pair Corralation between NORWEGIAN AIR and EAT WELL
Assuming the 90 days trading horizon NORWEGIAN AIR SHUT is expected to generate 1.18 times more return on investment than EAT WELL. However, NORWEGIAN AIR is 1.18 times more volatile than EAT WELL INVESTMENT. It trades about 0.01 of its potential returns per unit of risk. EAT WELL INVESTMENT is currently generating about -0.01 per unit of risk. If you would invest 93.00 in NORWEGIAN AIR SHUT on December 4, 2024 and sell it today you would earn a total of 0.00 from holding NORWEGIAN AIR SHUT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
NORWEGIAN AIR SHUT vs. EAT WELL INVESTMENT
Performance |
| Timeline |
| NORWEGIAN AIR SHUT |
| EAT WELL INVESTMENT |
NORWEGIAN AIR and EAT WELL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORWEGIAN AIR and EAT WELL
The main advantage of trading using opposite NORWEGIAN AIR and EAT WELL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORWEGIAN AIR position performs unexpectedly, EAT WELL 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 EAT WELL will offset losses from the drop in EAT WELL's long position.| NORWEGIAN AIR vs. alstria office REIT AG | NORWEGIAN AIR vs. Ping An Insurance | NORWEGIAN AIR vs. Vienna Insurance Group | NORWEGIAN AIR vs. KENEDIX OFFICE INV |
| EAT WELL vs. Hua Hong Semiconductor | EAT WELL vs. ELMOS SEMICONDUCTOR | EAT WELL vs. IMAGIN MEDICAL INC | EAT WELL vs. Semiconductor Manufacturing International |
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.
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