Correlation Between NORWEGIAN AIR and Brockhaus Capital
Can any of the company-specific risk be diversified away by investing in both NORWEGIAN AIR and Brockhaus Capital 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 Brockhaus Capital 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 Brockhaus Capital Management, you can compare the effects of market volatilities on NORWEGIAN AIR and Brockhaus Capital 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 Brockhaus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORWEGIAN AIR and Brockhaus Capital.
Diversification Opportunities for NORWEGIAN AIR and Brockhaus Capital
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between NORWEGIAN and Brockhaus is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding NORWEGIAN AIR SHUT and Brockhaus Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brockhaus Capital 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 Brockhaus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brockhaus Capital has no effect on the direction of NORWEGIAN AIR i.e., NORWEGIAN AIR and Brockhaus Capital go up and down completely randomly.
Pair Corralation between NORWEGIAN AIR and Brockhaus Capital
Assuming the 90 days trading horizon NORWEGIAN AIR SHUT is expected to generate 0.94 times more return on investment than Brockhaus Capital. However, NORWEGIAN AIR SHUT is 1.07 times less risky than Brockhaus Capital. It trades about 0.03 of its potential returns per unit of risk. Brockhaus Capital Management is currently generating about -0.09 per unit of risk. If you would invest 91.00 in NORWEGIAN AIR SHUT on December 10, 2024 and sell it today you would earn a total of 5.00 from holding NORWEGIAN AIR SHUT or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORWEGIAN AIR SHUT vs. Brockhaus Capital Management
Performance |
| Timeline |
| NORWEGIAN AIR SHUT |
| Brockhaus Capital |
NORWEGIAN AIR and Brockhaus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORWEGIAN AIR and Brockhaus Capital
The main advantage of trading using opposite NORWEGIAN AIR and Brockhaus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORWEGIAN AIR position performs unexpectedly, Brockhaus Capital 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 Brockhaus Capital will offset losses from the drop in Brockhaus Capital's long position.| NORWEGIAN AIR vs. Columbia Sportswear | NORWEGIAN AIR vs. Spirent Communications plc | NORWEGIAN AIR vs. Micron Technology | NORWEGIAN AIR vs. Beijing Media |
| Brockhaus Capital vs. SOEDER SPORTFISKE AB | Brockhaus Capital vs. Transport International Holdings | Brockhaus Capital vs. Globe Trade Centre | Brockhaus Capital vs. CarsalesCom |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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