Correlation Between Nordinvestments and Cessatech

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

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

Diversification Opportunities for Nordinvestments and Cessatech

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Correlation Coefficient

Nordinvestments  Cessatech

Pay attention - limited upside

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

Pair Corralation between Nordinvestments and Cessatech

Assuming the 90 days trading horizon Nordinvestments AS is expected to generate 1.44 times more return on investment than Cessatech. However, Nordinvestments is 1.44 times more volatile than Cessatech AS. It trades about -0.01 of its potential returns per unit of risk. Cessatech AS is currently generating about -0.1 per unit of risk. If you would invest  364.00  in Nordinvestments AS on October 4, 2024 and sell it today you would lose (241.00) from holding Nordinvestments AS or give up 66.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	8.33%
Values	Daily Returns

Nordinvestments AS  vs.  Cessatech AS

Nordinvestments AS

Risk-Adjusted Performance

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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 current stock price disarray, may contribute to short-term losses for the investors.

Cessatech AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cessatech AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Nordinvestments and Cessatech

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

The idea behind Nordinvestments AS and Cessatech 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.