Correlation Between Territorial Bancorp and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Territorial Bancorp 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 Territorial Bancorp and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Territorial Bancorp and Nordea Bank Abp, you can compare the effects of market volatilities on Territorial Bancorp 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 Territorial Bancorp with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Territorial Bancorp and Nordea Bank.
Diversification Opportunities for Territorial Bancorp and Nordea Bank
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Territorial and Nordea is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Territorial Bancorp 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 Territorial Bancorp 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 Territorial Bancorp 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 Territorial Bancorp i.e., Territorial Bancorp and Nordea Bank go up and down completely randomly.
Pair Corralation between Territorial Bancorp and Nordea Bank
Given the investment horizon of 90 days Territorial Bancorp is expected to under-perform the Nordea Bank. In addition to that, Territorial Bancorp is 2.12 times more volatile than Nordea Bank Abp. It trades about -0.03 of its total potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.03 per unit of volatility. If you would invest 982.00 in Nordea Bank Abp on September 4, 2024 and sell it today you would earn a total of 150.00 from holding Nordea Bank Abp or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Territorial Bancorp vs. Nordea Bank Abp
Performance |
| Timeline |
| Territorial Bancorp |
| Nordea Bank Abp |
Territorial Bancorp and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Territorial Bancorp and Nordea Bank
The main advantage of trading using opposite Territorial Bancorp and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Territorial Bancorp 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.| Territorial Bancorp vs. International Bancshares | Territorial Bancorp vs. Finward Bancorp | Territorial Bancorp vs. Aquagold International | Territorial Bancorp vs. Thrivent High Yield |
| Nordea Bank vs. United Overseas Bank | Nordea Bank vs. KBC Groep NV | Nordea Bank vs. Bank Mandiri Persero | Nordea Bank vs. Overseas Chinese Banking |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |