Correlation Between Spar Nord and Nordinvestments
Can any of the company-specific risk be diversified away by investing in both Spar Nord and Nordinvestments 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 Spar Nord and Nordinvestments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spar Nord Bank and Nordinvestments AS, you can compare the effects of market volatilities on Spar Nord and Nordinvestments 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 Spar Nord with a short position of Nordinvestments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spar Nord and Nordinvestments.
Diversification Opportunities for Spar Nord and Nordinvestments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spar and Nordinvestments is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spar Nord Bank and Nordinvestments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordinvestments AS and Spar Nord 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 Spar Nord Bank are associated (or correlated) with Nordinvestments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordinvestments AS has no effect on the direction of Spar Nord i.e., Spar Nord and Nordinvestments go up and down completely randomly.
Pair Corralation between Spar Nord and Nordinvestments
If you would invest 123.00 in Nordinvestments AS on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Nordinvestments AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spar Nord Bank vs. Nordinvestments AS
Performance |
| Timeline |
| Spar Nord Bank |
| Nordinvestments AS |
Spar Nord and Nordinvestments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spar Nord and Nordinvestments
The main advantage of trading using opposite Spar Nord and Nordinvestments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spar Nord position performs unexpectedly, Nordinvestments 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 Nordinvestments will offset losses from the drop in Nordinvestments' long position.| Spar Nord vs. Dataproces Group AS | Spar Nord vs. cBrain AS | Spar Nord vs. ALK Abell AS | Spar Nord vs. ChemoMetec AS |
| Nordinvestments vs. Donkeyrepublic Holding AS | Nordinvestments vs. MapsPeople AS | Nordinvestments vs. Dataproces 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |