Correlation Between Pacteo Actions and Nordea 1

Can any of the company-specific risk be diversified away by investing in both Pacteo Actions and Nordea 1 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 Pacteo Actions and Nordea 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pacteo Actions Europe and Nordea 1 SICAV, you can compare the effects of market volatilities on Pacteo Actions and Nordea 1 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 Pacteo Actions with a short position of Nordea 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacteo Actions and Nordea 1.

Diversification Opportunities for Pacteo Actions and Nordea 1

0.0

Correlation Coefficient

Pacteo Actions  Nordea 1

Pay attention - limited upside

The 3 months correlation between Pacteo and Nordea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pacteo Actions Europe and Nordea 1 SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea 1 SICAV and Pacteo Actions 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 Pacteo Actions Europe are associated (or correlated) with Nordea 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea 1 SICAV has no effect on the direction of Pacteo Actions i.e., Pacteo Actions and Nordea 1 go up and down completely randomly.

Pair Corralation between Pacteo Actions and Nordea 1

If you would invest  1,335  in Pacteo Actions Europe on September 22, 2024 and sell it today you would earn a total of  310.00  from holding Pacteo Actions Europe or generate 23.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Pacteo Actions Europe  vs.  Nordea 1 SICAV

Pacteo Actions Europe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pacteo Actions Europe has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Pacteo Actions is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nordea 1 SICAV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nordea 1 SICAV has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Nordea 1 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pacteo Actions and Nordea 1

The main advantage of trading using opposite Pacteo Actions and Nordea 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacteo Actions position performs unexpectedly, Nordea 1 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 1 will offset losses from the drop in Nordea 1's long position.

The idea behind Pacteo Actions Europe and Nordea 1 SICAV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.