Correlation Between PARKEN Sport and Nordea Invest
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By analyzing existing cross correlation between PARKEN Sport Entertainment and Nordea Invest Global, you can compare the effects of market volatilities on PARKEN Sport and Nordea Invest 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 PARKEN Sport with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Nordea Invest.
Diversification Opportunities for PARKEN Sport and Nordea Invest
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PARKEN and Nordea is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global and PARKEN Sport 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 PARKEN Sport Entertainment are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Global has no effect on the direction of PARKEN Sport i.e., PARKEN Sport and Nordea Invest go up and down completely randomly.
Pair Corralation between PARKEN Sport and Nordea Invest
Assuming the 90 days trading horizon PARKEN Sport Entertainment is expected to generate 1.91 times more return on investment than Nordea Invest. However, PARKEN Sport is 1.91 times more volatile than Nordea Invest Global. It trades about 0.2 of its potential returns per unit of risk. Nordea Invest Global is currently generating about 0.12 per unit of risk. If you would invest 12,150 in PARKEN Sport Entertainment on September 20, 2024 and sell it today you would earn a total of 850.00 from holding PARKEN Sport Entertainment or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Nordea Invest Global
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Nordea Invest Global |
PARKEN Sport and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Nordea Invest
The main advantage of trading using opposite PARKEN Sport and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport position performs unexpectedly, Nordea Invest 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 Invest will offset losses from the drop in Nordea Invest's long position.| PARKEN Sport vs. Broendbyernes IF Fodbold | PARKEN Sport vs. Bang Olufsen | PARKEN Sport vs. Matas AS | PARKEN Sport vs. NKT AS |
| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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