Correlation Between Sporttotal and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Sporttotal and NTG Nordic 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 Sporttotal and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sporttotal AG and NTG Nordic Transport, you can compare the effects of market volatilities on Sporttotal and NTG Nordic 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 Sporttotal with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sporttotal and NTG Nordic.
Diversification Opportunities for Sporttotal and NTG Nordic
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sporttotal and NTG is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sporttotal AG and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and Sporttotal 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 Sporttotal AG are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Sporttotal i.e., Sporttotal and NTG Nordic go up and down completely randomly.
Pair Corralation between Sporttotal and NTG Nordic
Assuming the 90 days trading horizon Sporttotal AG is expected to under-perform the NTG Nordic. In addition to that, Sporttotal is 1.47 times more volatile than NTG Nordic Transport. It trades about -0.02 of its total potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.01 per unit of volatility. If you would invest 3,925 in NTG Nordic Transport on September 1, 2024 and sell it today you would lose (95.00) from holding NTG Nordic Transport or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sporttotal AG vs. NTG Nordic Transport
Performance |
| Timeline |
| Sporttotal AG |
| NTG Nordic Transport |
Sporttotal and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sporttotal and NTG Nordic
The main advantage of trading using opposite Sporttotal and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sporttotal position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| Sporttotal vs. SIVERS SEMICONDUCTORS AB | Sporttotal vs. Darden Restaurants | Sporttotal vs. Reliance Steel Aluminum | Sporttotal vs. Q2M Managementberatung AG |
| NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI Holdings | NTG Nordic vs. Origin Agritech | NTG Nordic vs. SIVERS SEMICONDUCTORS AB |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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