Correlation Between Vestas Wind and Nordea Invest
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By analyzing existing cross correlation between Vestas Wind Systems and Nordea Invest Global, you can compare the effects of market volatilities on Vestas Wind and Nordea Invest 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 Vestas Wind with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestas Wind and Nordea Invest.
Diversification Opportunities for Vestas Wind and Nordea Invest
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vestas and Nordea is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vestas Wind Systems and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global and Vestas Wind 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 Vestas Wind Systems are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Global has no effect on the direction of Vestas Wind i.e., Vestas Wind and Nordea Invest go up and down completely randomly.
Pair Corralation between Vestas Wind and Nordea Invest
Assuming the 90 days trading horizon Vestas Wind Systems is expected to under-perform the Nordea Invest. In addition to that, Vestas Wind is 2.2 times more volatile than Nordea Invest Global. It trades about -0.04 of its total potential returns per unit of risk. Nordea Invest Global is currently generating about 0.1 per unit of volatility. If you would invest 3,469 in Nordea Invest Global on September 19, 2024 and sell it today you would earn a total of 1,011 from holding Nordea Invest Global or generate 29.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.44% |
| Values | Daily Returns |
Vestas Wind Systems vs. Nordea Invest Global
Performance |
| Timeline |
| Vestas Wind Systems |
| Nordea Invest Global |
Vestas Wind and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestas Wind and Nordea Invest
The main advantage of trading using opposite Vestas Wind and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestas Wind position performs unexpectedly, Nordea Invest 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 Invest will offset losses from the drop in Nordea Invest's long position.| Vestas Wind vs. Genmab AS | Vestas Wind vs. Danske Bank AS | Vestas Wind vs. Ambu AS | Vestas Wind vs. Bavarian Nordic |
| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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