Correlation Between UTD OV and NORDIC HALIBUT
Can any of the company-specific risk be diversified away by investing in both UTD OV and NORDIC HALIBUT 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 UTD OV and NORDIC HALIBUT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UTD OV BK LOC ADR1 and NORDIC HALIBUT AS, you can compare the effects of market volatilities on UTD OV and NORDIC HALIBUT 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 UTD OV with a short position of NORDIC HALIBUT. Check out your portfolio center. Please also check ongoing floating volatility patterns of UTD OV and NORDIC HALIBUT.
Diversification Opportunities for UTD OV and NORDIC HALIBUT
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UTD and NORDIC is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding UTD OV BK LOC ADR1 and NORDIC HALIBUT AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDIC HALIBUT AS and UTD OV 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 UTD OV BK LOC ADR1 are associated (or correlated) with NORDIC HALIBUT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDIC HALIBUT AS has no effect on the direction of UTD OV i.e., UTD OV and NORDIC HALIBUT go up and down completely randomly.
Pair Corralation between UTD OV and NORDIC HALIBUT
Assuming the 90 days trading horizon UTD OV BK LOC ADR1 is expected to generate 0.48 times more return on investment than NORDIC HALIBUT. However, UTD OV BK LOC ADR1 is 2.07 times less risky than NORDIC HALIBUT. It trades about 0.15 of its potential returns per unit of risk. NORDIC HALIBUT AS is currently generating about 0.07 per unit of risk. If you would invest 5,050 in UTD OV BK LOC ADR1 on October 20, 2024 and sell it today you would earn a total of 150.00 from holding UTD OV BK LOC ADR1 or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UTD OV BK LOC ADR1 vs. NORDIC HALIBUT AS
Performance |
| Timeline |
| UTD OV BK |
| NORDIC HALIBUT AS |
UTD OV and NORDIC HALIBUT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UTD OV and NORDIC HALIBUT
The main advantage of trading using opposite UTD OV and NORDIC HALIBUT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UTD OV position performs unexpectedly, NORDIC HALIBUT 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 NORDIC HALIBUT will offset losses from the drop in NORDIC HALIBUT's long position.| UTD OV vs. POSBO UNSPADRS20YC1 | UTD OV vs. Postal Savings Bank | UTD OV vs. Truist Financial | UTD OV vs. OVERSEA CHINUNSPADR2 |
| NORDIC HALIBUT vs. ARDAGH METAL PACDL 0001 | NORDIC HALIBUT vs. Fortescue Metals Group | NORDIC HALIBUT vs. Nippon Steel | NORDIC HALIBUT vs. Air Transport Services |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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