Correlation Between SaltX Technology and Nordic Iron
Can any of the company-specific risk be diversified away by investing in both SaltX Technology and Nordic Iron 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 SaltX Technology and Nordic Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SaltX Technology Holding and Nordic Iron Ore, you can compare the effects of market volatilities on SaltX Technology and Nordic Iron 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 SaltX Technology with a short position of Nordic Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and Nordic Iron.
Diversification Opportunities for SaltX Technology and Nordic Iron
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SaltX and Nordic is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Nordic Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Iron Ore and SaltX Technology 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 SaltX Technology Holding are associated (or correlated) with Nordic Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Iron Ore has no effect on the direction of SaltX Technology i.e., SaltX Technology and Nordic Iron go up and down completely randomly.
Pair Corralation between SaltX Technology and Nordic Iron
Assuming the 90 days trading horizon SaltX Technology Holding is expected to under-perform the Nordic Iron. In addition to that, SaltX Technology is 1.27 times more volatile than Nordic Iron Ore. It trades about -0.04 of its total potential returns per unit of risk. Nordic Iron Ore is currently generating about -0.02 per unit of volatility. If you would invest 595.00 in Nordic Iron Ore on September 1, 2024 and sell it today you would lose (95.00) from holding Nordic Iron Ore or give up 15.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaltX Technology Holding vs. Nordic Iron Ore
Performance |
| Timeline |
| SaltX Technology Holding |
| Nordic Iron Ore |
SaltX Technology and Nordic Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and Nordic Iron
The main advantage of trading using opposite SaltX Technology and Nordic Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology position performs unexpectedly, Nordic Iron 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 Iron will offset losses from the drop in Nordic Iron's long position.| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
| Nordic Iron vs. Leading Edge Materials | Nordic Iron vs. Alzinova AB | Nordic Iron vs. SaltX Technology Holding | Nordic Iron vs. KABE Group AB |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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