Correlation Between BankIn Bredygt and Nordinvestments

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

By analyzing existing cross correlation between BankIn Bredygt Klimaakt and Nordinvestments AS, you can compare the effects of market volatilities on BankIn Bredygt and Nordinvestments 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 BankIn Bredygt with a short position of Nordinvestments. Check out your portfolio center. Please also check ongoing floating volatility patterns of BankIn Bredygt and Nordinvestments.

Diversification Opportunities for BankIn Bredygt and Nordinvestments

0.0

Correlation Coefficient

BankIn Bredygt  Nordinvestments

Pay attention - limited upside

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

Pair Corralation between BankIn Bredygt and Nordinvestments

Assuming the 90 days trading horizon BankIn Bredygt Klimaakt is expected to generate 0.34 times more return on investment than Nordinvestments. However, BankIn Bredygt Klimaakt is 2.98 times less risky than Nordinvestments. It trades about 0.02 of its potential returns per unit of risk. Nordinvestments AS is currently generating about 0.0 per unit of risk. If you would invest  10,530  in BankIn Bredygt Klimaakt on September 12, 2024 and sell it today you would earn a total of  260.00  from holding BankIn Bredygt Klimaakt or generate 2.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	46.05%
Values	Daily Returns

BankIn Bredygt Klimaakt  vs.  Nordinvestments AS

BankIn Bredygt Klimaakt

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BankIn Bredygt Klimaakt are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, BankIn Bredygt may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Nordinvestments AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nordinvestments AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Nordinvestments is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with BankIn Bredygt and Nordinvestments

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

The idea behind BankIn Bredygt Klimaakt and Nordinvestments 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.