Correlation Between NORWEGIAN AIR and Platinum Investment
Can any of the company-specific risk be diversified away by investing in both NORWEGIAN AIR and Platinum Investment 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 Platinum Investment 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 Platinum Investment Management, you can compare the effects of market volatilities on NORWEGIAN AIR and Platinum Investment 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 Platinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORWEGIAN AIR and Platinum Investment.
Diversification Opportunities for NORWEGIAN AIR and Platinum Investment
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between NORWEGIAN and Platinum is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NORWEGIAN AIR SHUT and Platinum Investment Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum 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 Platinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Investment has no effect on the direction of NORWEGIAN AIR i.e., NORWEGIAN AIR and Platinum Investment go up and down completely randomly.
Pair Corralation between NORWEGIAN AIR and Platinum Investment
Assuming the 90 days trading horizon NORWEGIAN AIR SHUT is expected to generate 0.42 times more return on investment than Platinum Investment. However, NORWEGIAN AIR SHUT is 2.37 times less risky than Platinum Investment. It trades about -0.03 of its potential returns per unit of risk. Platinum Investment Management is currently generating about -0.02 per unit of risk. If you would invest 94.00 in NORWEGIAN AIR SHUT on September 22, 2024 and sell it today you would lose (2.00) from holding NORWEGIAN AIR SHUT or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORWEGIAN AIR SHUT vs. Platinum Investment Management
Performance |
| Timeline |
| NORWEGIAN AIR SHUT |
| Platinum Investment |
NORWEGIAN AIR and Platinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORWEGIAN AIR and Platinum Investment
The main advantage of trading using opposite NORWEGIAN AIR and Platinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORWEGIAN AIR position performs unexpectedly, Platinum Investment 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 Platinum Investment will offset losses from the drop in Platinum Investment's long position.| NORWEGIAN AIR vs. Fukuyama Transporting Co | NORWEGIAN AIR vs. QUEEN S ROAD | NORWEGIAN AIR vs. COPLAND ROAD CAPITAL | NORWEGIAN AIR vs. TEXAS ROADHOUSE |
| Platinum Investment vs. Blackstone Group | Platinum Investment vs. The Bank of | Platinum Investment vs. Ameriprise Financial | Platinum Investment vs. State Street |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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