Correlation Between SPORTING and Norma Group
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By analyzing existing cross correlation between SPORTING and Norma Group AG, you can compare the effects of market volatilities on SPORTING 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 SPORTING with a short position of Norma Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPORTING and Norma Group.
Diversification Opportunities for SPORTING and Norma Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPORTING and Norma is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SPORTING 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 SPORTING 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 SPORTING 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 SPORTING i.e., SPORTING and Norma Group go up and down completely randomly.
Pair Corralation between SPORTING and Norma Group
If you would invest 1,266 in Norma Group AG on September 5, 2024 and sell it today you would earn a total of 172.00 from holding Norma Group AG or generate 13.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SPORTING vs. Norma Group AG
Performance |
| Timeline |
| SPORTING |
| Norma Group AG |
SPORTING and Norma Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPORTING and Norma Group
The main advantage of trading using opposite SPORTING and Norma Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPORTING 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.The idea behind SPORTING and Norma Group AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Norma Group vs. United Rentals | Norma Group vs. GEELY AUTOMOBILE | Norma Group vs. Bumrungrad Hospital Public | Norma Group vs. National Health Investors |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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