Correlation Between Pandora AS and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Pandora AS and NTG Nordic 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 Pandora AS and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pandora AS and NTG Nordic Transport, you can compare the effects of market volatilities on Pandora AS and NTG Nordic 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 Pandora AS with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pandora AS and NTG Nordic.
Diversification Opportunities for Pandora AS and NTG Nordic
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pandora and NTG is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pandora AS and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and Pandora AS 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 Pandora AS are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Pandora AS i.e., Pandora AS and NTG Nordic go up and down completely randomly.
Pair Corralation between Pandora AS and NTG Nordic
Assuming the 90 days trading horizon Pandora AS is expected to generate 0.75 times more return on investment than NTG Nordic. However, Pandora AS is 1.34 times less risky than NTG Nordic. It trades about 0.04 of its potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.0 per unit of risk. If you would invest 99,960 in Pandora AS on August 29, 2024 and sell it today you would earn a total of 11,740 from holding Pandora AS or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Pandora AS vs. NTG Nordic Transport
Performance |
| Timeline |
| Pandora AS |
| NTG Nordic Transport |
Pandora AS and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pandora AS and NTG Nordic
The main advantage of trading using opposite Pandora AS and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pandora AS position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| Pandora AS vs. Broendbyernes IF Fodbold | Pandora AS vs. Bang Olufsen | Pandora AS vs. Matas AS | Pandora AS vs. NKT AS |
| NTG Nordic vs. cBrain AS | NTG Nordic vs. Netcompany Group AS | NTG Nordic vs. ChemoMetec AS | NTG Nordic vs. NKT AS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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