Correlation Between Philly Shipyard and Nordic Unmanned
Can any of the company-specific risk be diversified away by investing in both Philly Shipyard and Nordic Unmanned 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 Philly Shipyard and Nordic Unmanned into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philly Shipyard ASA and Nordic Unmanned As, you can compare the effects of market volatilities on Philly Shipyard and Nordic Unmanned 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 Philly Shipyard with a short position of Nordic Unmanned. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philly Shipyard and Nordic Unmanned.
Diversification Opportunities for Philly Shipyard and Nordic Unmanned
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Philly and Nordic is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Philly Shipyard ASA and Nordic Unmanned As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Unmanned As and Philly Shipyard 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 Philly Shipyard ASA are associated (or correlated) with Nordic Unmanned. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Unmanned As has no effect on the direction of Philly Shipyard i.e., Philly Shipyard and Nordic Unmanned go up and down completely randomly.
Pair Corralation between Philly Shipyard and Nordic Unmanned
Assuming the 90 days trading horizon Philly Shipyard ASA is expected to generate 0.17 times more return on investment than Nordic Unmanned. However, Philly Shipyard ASA is 5.88 times less risky than Nordic Unmanned. It trades about -0.02 of its potential returns per unit of risk. Nordic Unmanned As is currently generating about -0.17 per unit of risk. If you would invest 6,800 in Philly Shipyard ASA on August 29, 2024 and sell it today you would lose (200.00) from holding Philly Shipyard ASA or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philly Shipyard ASA vs. Nordic Unmanned As
Performance |
| Timeline |
| Philly Shipyard ASA |
| Nordic Unmanned As |
Philly Shipyard and Nordic Unmanned Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philly Shipyard and Nordic Unmanned
The main advantage of trading using opposite Philly Shipyard and Nordic Unmanned positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philly Shipyard position performs unexpectedly, Nordic Unmanned 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 Unmanned will offset losses from the drop in Nordic Unmanned's long position.| Philly Shipyard vs. Sparebanken Ost | Philly Shipyard vs. Helgeland Sparebank | Philly Shipyard vs. 5Th Planet Games | Philly Shipyard vs. Awilco Drilling PLC |
| Nordic Unmanned vs. Skue Sparebank | Nordic Unmanned vs. Sparebanken Ost | Nordic Unmanned vs. Napatech AS | Nordic Unmanned vs. Norwegian Air Shuttle |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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