Correlation Between Zenicor Medical and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Zenicor Medical 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 Zenicor Medical and Nordea Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zenicor Medical Systems and Nordea Bank Abp, you can compare the effects of market volatilities on Zenicor Medical 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 Zenicor Medical with a short position of Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zenicor Medical and Nordea Bank.
Diversification Opportunities for Zenicor Medical and Nordea Bank
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zenicor and Nordea is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Zenicor Medical Systems 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 Zenicor Medical 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 Zenicor Medical Systems 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 Zenicor Medical i.e., Zenicor Medical and Nordea Bank go up and down completely randomly.
Pair Corralation between Zenicor Medical and Nordea Bank
Assuming the 90 days trading horizon Zenicor Medical Systems is expected to generate 3.76 times more return on investment than Nordea Bank. However, Zenicor Medical is 3.76 times more volatile than Nordea Bank Abp. It trades about 0.13 of its potential returns per unit of risk. Nordea Bank Abp is currently generating about 0.14 per unit of risk. If you would invest 175.00 in Zenicor Medical Systems on November 8, 2024 and sell it today you would earn a total of 17.00 from holding Zenicor Medical Systems or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zenicor Medical Systems vs. Nordea Bank Abp
Performance |
| Timeline |
| Zenicor Medical Systems |
| Nordea Bank Abp |
Zenicor Medical and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zenicor Medical and Nordea Bank
The main advantage of trading using opposite Zenicor Medical and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zenicor Medical 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.| Zenicor Medical vs. New Nordic Healthbrands | Zenicor Medical vs. Diamyd Medical AB | Zenicor Medical vs. Flexion Mobile PLC | Zenicor Medical vs. Clean Motion AB |
| Nordea Bank vs. Vitec Software Group | Nordea Bank vs. Kinnevik Investment AB | Nordea Bank vs. Norion Bank | Nordea Bank vs. Arion banki hf |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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