Correlation Between Strategic Investments and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Strategic Investments and Nordea Bank 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 Strategic Investments and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Investments AS and Nordea Bank Abp, you can compare the effects of market volatilities on Strategic Investments and Nordea Bank 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 Strategic Investments with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Investments and Nordea Bank.
Diversification Opportunities for Strategic Investments and Nordea Bank
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Strategic and Nordea is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Investments AS and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp and Strategic Investments 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 Strategic Investments AS are associated (or correlated) with Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Strategic Investments i.e., Strategic Investments and Nordea Bank go up and down completely randomly.
Pair Corralation between Strategic Investments and Nordea Bank
Assuming the 90 days trading horizon Strategic Investments AS is expected to under-perform the Nordea Bank. In addition to that, Strategic Investments is 2.42 times more volatile than Nordea Bank Abp. It trades about -0.21 of its total potential returns per unit of risk. Nordea Bank Abp is currently generating about -0.06 per unit of volatility. If you would invest 8,146 in Nordea Bank Abp on August 30, 2024 and sell it today you would lose (150.00) from holding Nordea Bank Abp or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Investments AS vs. Nordea Bank Abp
Performance |
| Timeline |
| Strategic Investments |
| Nordea Bank Abp |
Strategic Investments and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Investments and Nordea Bank
The main advantage of trading using opposite Strategic Investments and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Investments position performs unexpectedly, Nordea Bank 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 Nordea Bank will offset losses from the drop in Nordea Bank's long position.| Strategic Investments vs. SKAKO AS | Strategic Investments vs. Rovsing AS | Strategic Investments vs. Bavarian Nordic | Strategic Investments vs. Gyldendal AS |
| Nordea Bank vs. Jyske Bank AS | Nordea Bank vs. Tryg AS | Nordea Bank vs. Danske Bank AS | Nordea Bank vs. ISS 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |