Correlation Between NORDIC HALIBUT and Airbus SE
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Airbus SE 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 Airbus SE 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 Airbus SE, you can compare the effects of market volatilities on NORDIC HALIBUT and Airbus SE 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 Airbus SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Airbus SE.
Diversification Opportunities for NORDIC HALIBUT and Airbus SE
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and Airbus is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Airbus SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus SE 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 Airbus SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbus SE has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Airbus SE go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Airbus SE
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to generate 0.7 times more return on investment than Airbus SE. However, NORDIC HALIBUT AS is 1.42 times less risky than Airbus SE. It trades about 0.06 of its potential returns per unit of risk. Airbus SE is currently generating about -0.03 per unit of risk. If you would invest 160.00 in NORDIC HALIBUT AS on December 2, 2024 and sell it today you would earn a total of 2.00 from holding NORDIC HALIBUT AS or generate 1.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
NORDIC HALIBUT AS vs. Airbus SE
Performance |
Timeline |
NORDIC HALIBUT AS |
Airbus SE |
NORDIC HALIBUT and Airbus SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NORDIC HALIBUT and Airbus SE
The main advantage of trading using opposite NORDIC HALIBUT and Airbus SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Airbus SE 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 Airbus SE will offset losses from the drop in Airbus SE's long position.NORDIC HALIBUT vs. Motorcar Parts of | NORDIC HALIBUT vs. SOLSTAD OFFSHORE NK | NORDIC HALIBUT vs. PICKN PAY STORES | NORDIC HALIBUT vs. CSSC Offshore Marine |
Airbus SE vs. Television Broadcasts Limited | Airbus SE vs. Sekisui Chemical Co | Airbus SE vs. EVS Broadcast Equipment | Airbus SE vs. Sinopec Shanghai Petrochemical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |