Correlation Between NTG Nordic and GREEN BATTERY

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

By analyzing existing cross correlation between NTG Nordic Transport and GREEN BATTERY MINERALS, you can compare the effects of market volatilities on NTG Nordic and GREEN BATTERY 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 NTG Nordic with a short position of GREEN BATTERY. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and GREEN BATTERY.

Diversification Opportunities for NTG Nordic and GREEN BATTERY

-0.05

Correlation Coefficient

NTG Nordic  GREEN BATTERY

Good diversification

The 3 months correlation between NTG and GREEN is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and GREEN BATTERY MINERALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREEN BATTERY MINERALS and NTG Nordic 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 NTG Nordic Transport are associated (or correlated) with GREEN BATTERY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREEN BATTERY MINERALS has no effect on the direction of NTG Nordic i.e., NTG Nordic and GREEN BATTERY go up and down completely randomly.

Pair Corralation between NTG Nordic and GREEN BATTERY

Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 0.12 times more return on investment than GREEN BATTERY. However, NTG Nordic Transport is 8.65 times less risky than GREEN BATTERY. It trades about -0.41 of its potential returns per unit of risk. GREEN BATTERY MINERALS is currently generating about -0.07 per unit of risk. If you would invest  3,755  in NTG Nordic Transport on October 6, 2024 and sell it today you would lose (275.00) from holding NTG Nordic Transport or give up 7.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	52.94%
Values	Daily Returns

NTG Nordic Transport  vs.  GREEN BATTERY MINERALS

NTG Nordic Transport

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NTG Nordic Transport has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

GREEN BATTERY MINERALS

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days GREEN BATTERY MINERALS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unsteady basic indicators, GREEN BATTERY reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NTG Nordic and GREEN BATTERY

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

The idea behind NTG Nordic Transport and GREEN BATTERY MINERALS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.