Correlation Between Nordinvestments and Hvidbjerg Bank

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

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

Diversification Opportunities for Nordinvestments and Hvidbjerg Bank

0.0

Correlation Coefficient

Nordinvestments  Hvidbjerg Bank

Pay attention - limited upside

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

Pair Corralation between Nordinvestments and Hvidbjerg Bank

If you would invest  11,600  in Hvidbjerg Bank on December 2, 2024 and sell it today you would earn a total of  1,900  from holding Hvidbjerg Bank or generate 16.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nordinvestments AS  vs.  Hvidbjerg Bank

Nordinvestments AS

Risk-Adjusted Performance

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.

Hvidbjerg Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hvidbjerg Bank are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Hvidbjerg Bank displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nordinvestments and Hvidbjerg Bank

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

The idea behind Nordinvestments AS and Hvidbjerg Bank 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.