Correlation Between Nordnet AB and Nimbus Group
Can any of the company-specific risk be diversified away by investing in both Nordnet AB and Nimbus Group 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 Nordnet AB and Nimbus Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordnet AB and Nimbus Group AB, you can compare the effects of market volatilities on Nordnet AB and Nimbus 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 Nordnet AB with a short position of Nimbus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordnet AB and Nimbus Group.
Diversification Opportunities for Nordnet AB and Nimbus Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nordnet and Nimbus is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nordnet AB and Nimbus Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nimbus Group AB and Nordnet AB 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 Nordnet AB are associated (or correlated) with Nimbus Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nimbus Group AB has no effect on the direction of Nordnet AB i.e., Nordnet AB and Nimbus Group go up and down completely randomly.
Pair Corralation between Nordnet AB and Nimbus Group
Assuming the 90 days trading horizon Nordnet AB is expected to generate 0.72 times more return on investment than Nimbus Group. However, Nordnet AB is 1.4 times less risky than Nimbus Group. It trades about 0.06 of its potential returns per unit of risk. Nimbus Group AB is currently generating about -0.03 per unit of risk. If you would invest 13,971 in Nordnet AB on September 12, 2024 and sell it today you would earn a total of 9,369 from holding Nordnet AB or generate 67.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordnet AB vs. Nimbus Group AB
Performance |
| Timeline |
| Nordnet AB |
| Nimbus Group AB |
Nordnet AB and Nimbus Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordnet AB and Nimbus Group
The main advantage of trading using opposite Nordnet AB and Nimbus Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordnet AB position performs unexpectedly, Nimbus 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 Nimbus Group will offset losses from the drop in Nimbus Group's long position.| Nordnet AB vs. Avanza Bank Holding | Nordnet AB vs. NIBE Industrier AB | Nordnet AB vs. Sinch AB | Nordnet AB vs. Axfood AB |
| Nimbus Group vs. Dometic Group AB | Nimbus Group vs. Garo AB | Nimbus Group vs. Byggmax Group AB | Nimbus Group vs. Nordnet 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |