Correlation Between Scandinavian Investment and North Media
Can any of the company-specific risk be diversified away by investing in both Scandinavian Investment and North Media 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 Scandinavian Investment and North Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Investment Group and North Media AS, you can compare the effects of market volatilities on Scandinavian Investment and North Media 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 Scandinavian Investment with a short position of North Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Investment and North Media.
Diversification Opportunities for Scandinavian Investment and North Media
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Scandinavian and North is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Investment Group and North Media AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Media AS and Scandinavian Investment 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 Scandinavian Investment Group are associated (or correlated) with North Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Media AS has no effect on the direction of Scandinavian Investment i.e., Scandinavian Investment and North Media go up and down completely randomly.
Pair Corralation between Scandinavian Investment and North Media
Assuming the 90 days trading horizon Scandinavian Investment Group is expected to generate 1.15 times more return on investment than North Media. However, Scandinavian Investment is 1.15 times more volatile than North Media AS. It trades about 0.05 of its potential returns per unit of risk. North Media AS is currently generating about -0.02 per unit of risk. If you would invest 265.00 in Scandinavian Investment Group on August 25, 2024 and sell it today you would earn a total of 63.00 from holding Scandinavian Investment Group or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Investment Group vs. North Media AS
Performance |
| Timeline |
| Scandinavian Investment |
| North Media AS |
Scandinavian Investment and North Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Investment and North Media
The main advantage of trading using opposite Scandinavian Investment and North Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Investment position performs unexpectedly, North Media 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 North Media will offset losses from the drop in North Media's long position.| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO AS |
| North Media vs. Matas AS | North Media vs. cBrain AS | North Media vs. Alm Brand | North Media vs. Netcompany Group 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |