Correlation Between NORDIC HALIBUT and Amundi Obligataire

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

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

Diversification Opportunities for NORDIC HALIBUT and Amundi Obligataire

-0.43

Correlation Coefficient

NORDIC HALIBUT  Amundi Obligataire

Very good diversification

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

Pair Corralation between NORDIC HALIBUT and Amundi Obligataire

Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Amundi Obligataire. In addition to that, NORDIC HALIBUT is 10.07 times more volatile than Amundi Obligataire Diversifi. It trades about -0.01 of its total potential returns per unit of risk. Amundi Obligataire Diversifi is currently generating about -0.01 per unit of volatility. 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

NORDIC HALIBUT AS  vs.  Amundi Obligataire Diversifi

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.

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.

Pair Trading with NORDIC HALIBUT and Amundi Obligataire

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

The idea behind NORDIC HALIBUT AS and Amundi Obligataire Diversifi 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.