Correlation Between Octopus Aim and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Octopus Aim and Nordea Bank 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 Octopus Aim and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Octopus Aim Vct and Nordea Bank Abp, you can compare the effects of market volatilities on Octopus Aim and Nordea Bank 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 Octopus Aim with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Octopus Aim and Nordea Bank.
Diversification Opportunities for Octopus Aim and Nordea Bank
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Octopus and Nordea is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Octopus Aim Vct and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp and Octopus Aim 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 Octopus Aim Vct are associated (or correlated) with Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Octopus Aim i.e., Octopus Aim and Nordea Bank go up and down completely randomly.
Pair Corralation between Octopus Aim and Nordea Bank
Assuming the 90 days trading horizon Octopus Aim Vct is expected to under-perform the Nordea Bank. But the stock apears to be less risky and, when comparing its historical volatility, Octopus Aim Vct is 2.1 times less risky than Nordea Bank. The stock trades about -0.1 of its potential returns per unit of risk. The Nordea Bank Abp is currently generating about 0.57 of returns per unit of risk over similar time horizon. If you would invest 11,880 in Nordea Bank Abp on October 26, 2024 and sell it today you would earn a total of 1,345 from holding Nordea Bank Abp or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Octopus Aim Vct vs. Nordea Bank Abp
Performance |
| Timeline |
| Octopus Aim Vct |
| Nordea Bank Abp |
Octopus Aim and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Octopus Aim and Nordea Bank
The main advantage of trading using opposite Octopus Aim and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Octopus Aim position performs unexpectedly, Nordea Bank 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 Nordea Bank will offset losses from the drop in Nordea Bank's long position.| Octopus Aim vs. Elmos Semiconductor SE | Octopus Aim vs. Norman Broadbent Plc | Octopus Aim vs. British American Tobacco | Octopus Aim vs. Fevertree Drinks Plc |
| Nordea Bank vs. Orient Telecoms | Nordea Bank vs. Foresight Environmental Infrastructure | Nordea Bank vs. JLEN Environmental Assets | Nordea Bank vs. Charter Communications Cl |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |