Correlation Between KABE Group and Nordic Iron
Can any of the company-specific risk be diversified away by investing in both KABE Group and Nordic Iron 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 KABE Group and Nordic Iron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KABE Group AB and Nordic Iron Ore, you can compare the effects of market volatilities on KABE Group and Nordic Iron 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 KABE Group with a short position of Nordic Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of KABE Group and Nordic Iron.
Diversification Opportunities for KABE Group and Nordic Iron
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KABE and Nordic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KABE Group AB and Nordic Iron Ore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Iron Ore and KABE Group 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 KABE Group AB are associated (or correlated) with Nordic Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Iron Ore has no effect on the direction of KABE Group i.e., KABE Group and Nordic Iron go up and down completely randomly.
Pair Corralation between KABE Group and Nordic Iron
Assuming the 90 days trading horizon KABE Group AB is expected to under-perform the Nordic Iron. But the stock apears to be less risky and, when comparing its historical volatility, KABE Group AB is 2.74 times less risky than Nordic Iron. The stock trades about -0.02 of its potential returns per unit of risk. The Nordic Iron Ore is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Nordic Iron Ore on December 1, 2024 and sell it today you would earn a total of 25.00 from holding Nordic Iron Ore or generate 4.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
KABE Group AB vs. Nordic Iron Ore
Performance |
Timeline |
KABE Group AB |
Nordic Iron Ore |
KABE Group and Nordic Iron Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KABE Group and Nordic Iron
The main advantage of trading using opposite KABE Group and Nordic Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KABE Group position performs unexpectedly, Nordic Iron 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 Iron will offset losses from the drop in Nordic Iron's long position.KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
Nordic Iron vs. Leading Edge Materials | Nordic Iron vs. Alzinova AB | Nordic Iron vs. SaltX Technology Holding |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |