Correlation Between Tamtron Group and Nordea Bank
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By analyzing existing cross correlation between Tamtron Group Oyj and Nordea Bank Abp, you can compare the effects of market volatilities on Tamtron Group 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 Tamtron Group with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamtron Group and Nordea Bank.
Diversification Opportunities for Tamtron Group and Nordea Bank
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tamtron and Nordea is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Tamtron Group Oyj 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 Tamtron Group 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 Tamtron Group Oyj 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 Tamtron Group i.e., Tamtron Group and Nordea Bank go up and down completely randomly.
Pair Corralation between Tamtron Group and Nordea Bank
Assuming the 90 days trading horizon Tamtron Group Oyj is expected to generate 1.82 times more return on investment than Nordea Bank. However, Tamtron Group is 1.82 times more volatile than Nordea Bank Abp. It trades about 0.2 of its potential returns per unit of risk. Nordea Bank Abp is currently generating about -0.02 per unit of risk. If you would invest 532.00 in Tamtron Group Oyj on September 1, 2024 and sell it today you would earn a total of 44.00 from holding Tamtron Group Oyj or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamtron Group Oyj vs. Nordea Bank Abp
Performance |
| Timeline |
| Tamtron Group Oyj |
| Nordea Bank Abp |
Tamtron Group and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamtron Group and Nordea Bank
The main advantage of trading using opposite Tamtron Group and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamtron Group 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.| Tamtron Group vs. Nordea Bank Abp | Tamtron Group vs. QPR Software Oyj | Tamtron Group vs. HKFoods Oyj A | Tamtron Group vs. Alandsbanken Abp A |
| Nordea Bank vs. Sampo Oyj A | Nordea Bank vs. Fortum Oyj | Nordea Bank vs. UPM Kymmene Oyj | Nordea Bank vs. Neste Oil Oyj |
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.
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