Correlation Between FMGAU and Nordic Semiconductor
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By analyzing existing cross correlation between FMGAU 6125 15 APR 32 and Nordic Semiconductor ASA, you can compare the effects of market volatilities on FMGAU and Nordic Semiconductor 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 FMGAU with a short position of Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of FMGAU and Nordic Semiconductor.
Diversification Opportunities for FMGAU and Nordic Semiconductor
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between FMGAU and Nordic is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding FMGAU 6125 15 APR 32 and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA and FMGAU 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 FMGAU 6125 15 APR 32 are associated (or correlated) with Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of FMGAU i.e., FMGAU and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between FMGAU and Nordic Semiconductor
Assuming the 90 days trading horizon FMGAU is expected to generate 117.05 times less return on investment than Nordic Semiconductor. But when comparing it to its historical volatility, FMGAU 6125 15 APR 32 is 1.12 times less risky than Nordic Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Nordic Semiconductor ASA on August 28, 2024 and sell it today you would earn a total of 81.00 from holding Nordic Semiconductor ASA or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
FMGAU 6125 15 APR 32 vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| FMGAU 6125 15 |
| Nordic Semiconductor ASA |
FMGAU and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FMGAU and Nordic Semiconductor
The main advantage of trading using opposite FMGAU and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FMGAU position performs unexpectedly, Nordic Semiconductor 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 Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| FMGAU vs. NETGEAR | FMGAU vs. Playtika Holding Corp | FMGAU vs. Primo Brands | FMGAU vs. Sphere Entertainment Co |
| Nordic Semiconductor vs. Nordic Semiconductor ASA | Nordic Semiconductor vs. STMicroelectronics NV | Nordic Semiconductor vs. Rohm Co Ltd | Nordic Semiconductor vs. Asm Pacific Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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