Correlation Between Nordic Waterproofing and IAR Systems
Can any of the company-specific risk be diversified away by investing in both Nordic Waterproofing and IAR Systems 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 Nordic Waterproofing and IAR Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Waterproofing Holding and IAR Systems Group, you can compare the effects of market volatilities on Nordic Waterproofing and IAR Systems 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 Nordic Waterproofing with a short position of IAR Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Waterproofing and IAR Systems.
Diversification Opportunities for Nordic Waterproofing and IAR Systems
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordic and IAR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Waterproofing Holding and IAR Systems Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAR Systems Group and Nordic Waterproofing 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 Nordic Waterproofing Holding are associated (or correlated) with IAR Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAR Systems Group has no effect on the direction of Nordic Waterproofing i.e., Nordic Waterproofing and IAR Systems go up and down completely randomly.
Pair Corralation between Nordic Waterproofing and IAR Systems
Assuming the 90 days trading horizon Nordic Waterproofing Holding is expected to generate 1.47 times more return on investment than IAR Systems. However, Nordic Waterproofing is 1.47 times more volatile than IAR Systems Group. It trades about 0.09 of its potential returns per unit of risk. IAR Systems Group is currently generating about 0.11 per unit of risk. If you would invest 16,720 in Nordic Waterproofing Holding on August 26, 2024 and sell it today you would earn a total of 840.00 from holding Nordic Waterproofing Holding or generate 5.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Waterproofing Holding vs. IAR Systems Group
Performance |
| Timeline |
| Nordic Waterproofing |
| IAR Systems Group |
Nordic Waterproofing and IAR Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Waterproofing and IAR Systems
The main advantage of trading using opposite Nordic Waterproofing and IAR Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Waterproofing position performs unexpectedly, IAR Systems 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 IAR Systems will offset losses from the drop in IAR Systems' long position.| Nordic Waterproofing vs. Bufab Holding AB | Nordic Waterproofing vs. Garo AB | Nordic Waterproofing vs. Inwido AB | Nordic Waterproofing vs. CTT Systems AB |
| IAR Systems vs. Lifco AB | IAR Systems vs. Lagercrantz Group AB | IAR Systems vs. Addtech AB | IAR Systems vs. Instalco Intressenter AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |