Correlation Between Amundi Obligataire and NORDIC HALIBUT

Can any of the company-specific risk be diversified away by investing in both Amundi Obligataire and NORDIC HALIBUT 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 Amundi Obligataire and NORDIC HALIBUT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Amundi Obligataire Diversifi and NORDIC HALIBUT AS, you can compare the effects of market volatilities on Amundi Obligataire and NORDIC HALIBUT 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 Amundi Obligataire with a short position of NORDIC HALIBUT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Obligataire and NORDIC HALIBUT.

Diversification Opportunities for Amundi Obligataire and NORDIC HALIBUT

-0.43

Correlation Coefficient

Amundi Obligataire  NORDIC HALIBUT

Very good diversification

The 3 months correlation between Amundi and NORDIC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Obligataire Diversifi and NORDIC HALIBUT AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDIC HALIBUT AS and Amundi Obligataire 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 Amundi Obligataire Diversifi are associated (or correlated) with NORDIC HALIBUT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDIC HALIBUT AS has no effect on the direction of Amundi Obligataire i.e., Amundi Obligataire and NORDIC HALIBUT go up and down completely randomly.

Pair Corralation between Amundi Obligataire and NORDIC HALIBUT

Assuming the 90 days trading horizon Amundi Obligataire Diversifi is expected to generate 0.1 times more return on investment than NORDIC HALIBUT. However, Amundi Obligataire Diversifi is 10.07 times less risky than NORDIC HALIBUT. It trades about -0.01 of its potential returns per unit of risk. NORDIC HALIBUT AS is currently generating about -0.01 per unit of risk. If you would invest  15,023  in Amundi Obligataire Diversifi on December 25, 2024 and sell it today you would lose (22.00) from holding Amundi Obligataire Diversifi or give up 0.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Amundi Obligataire Diversifi  vs.  NORDIC HALIBUT AS

Amundi Obligataire

Risk-Adjusted Performance

Very Weak

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

NORDIC HALIBUT AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days NORDIC HALIBUT AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, NORDIC HALIBUT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Amundi Obligataire and NORDIC HALIBUT

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

The idea behind Amundi Obligataire Diversifi and NORDIC HALIBUT AS 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.