Correlation Between One Media and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both One Media and Nordic Semiconductor 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 One Media and Nordic Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and Nordic Semiconductor ASA, you can compare the effects of market volatilities on One Media and Nordic Semiconductor 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 One Media with a short position of Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Nordic Semiconductor.
Diversification Opportunities for One Media and Nordic Semiconductor
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between One and Nordic is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA and One Media 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 One Media iP are associated (or correlated) with Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of One Media i.e., One Media and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between One Media and Nordic Semiconductor
Assuming the 90 days trading horizon One Media is expected to generate 1.6 times less return on investment than Nordic Semiconductor. In addition to that, One Media is 1.38 times more volatile than Nordic Semiconductor ASA. It trades about 0.04 of its total potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.08 per unit of volatility. If you would invest 10,372 in Nordic Semiconductor ASA on October 11, 2024 and sell it today you would earn a total of 268.00 from holding Nordic Semiconductor ASA or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
One Media iP vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| One Media iP |
| Nordic Semiconductor ASA |
One Media and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Nordic Semiconductor
The main advantage of trading using opposite One Media and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media position performs unexpectedly, Nordic Semiconductor 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| One Media vs. Vitec Software Group | One Media vs. Auto Trader Group | One Media vs. JB Hunt Transport | One Media vs. Various Eateries PLC |
| Nordic Semiconductor vs. Cizzle Biotechnology Holdings | Nordic Semiconductor vs. Edita Food Industries | Nordic Semiconductor vs. Spotify Technology SA | Nordic Semiconductor vs. Alfa Financial Software |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |