Correlation Between POSCO Holdings and Norma Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between POSCO Holdings and Norma Group AG, you can compare the effects of market volatilities on POSCO Holdings and Norma Group 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 POSCO Holdings with a short position of Norma Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of POSCO Holdings and Norma Group.
Diversification Opportunities for POSCO Holdings and Norma Group
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between POSCO and Norma is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding POSCO Holdings and Norma Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norma Group AG and POSCO Holdings 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 POSCO Holdings are associated (or correlated) with Norma Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norma Group AG has no effect on the direction of POSCO Holdings i.e., POSCO Holdings and Norma Group go up and down completely randomly.
Pair Corralation between POSCO Holdings and Norma Group
Assuming the 90 days horizon POSCO Holdings is expected to under-perform the Norma Group. But the stock apears to be less risky and, when comparing its historical volatility, POSCO Holdings is 1.03 times less risky than Norma Group. The stock trades about -0.12 of its potential returns per unit of risk. The Norma Group AG is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,484 in Norma Group AG on September 3, 2024 and sell it today you would lose (132.00) from holding Norma Group AG or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
POSCO Holdings vs. Norma Group AG
Performance |
| Timeline |
| POSCO Holdings |
| Norma Group AG |
POSCO Holdings and Norma Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POSCO Holdings and Norma Group
The main advantage of trading using opposite POSCO Holdings and Norma Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POSCO Holdings position performs unexpectedly, Norma Group 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 Norma Group will offset losses from the drop in Norma Group's long position.| POSCO Holdings vs. ArcelorMittal | POSCO Holdings vs. Steel Dynamics | POSCO Holdings vs. NIPPON STEEL SPADR | POSCO Holdings vs. Reliance Steel Aluminum |
| Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. METTLER TOLEDO INTL | Norma Group vs. Mitie Group PLC | Norma Group vs. LODESTAR MIN |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |