Correlation Between NTG Nordic and GRENKELEASING

Can any of the company-specific risk be diversified away by investing in both NTG Nordic and GRENKELEASING 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 GRENKELEASING 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 GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on NTG Nordic and GRENKELEASING 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 GRENKELEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and GRENKELEASING.

Diversification Opportunities for NTG Nordic and GRENKELEASING

0.54

Correlation Coefficient

NTG Nordic  GRENKELEASING

Very weak diversification

The 3 months correlation between NTG and GRENKELEASING is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Duss 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 GRENKELEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Duss has no effect on the direction of NTG Nordic i.e., NTG Nordic and GRENKELEASING go up and down completely randomly.

Pair Corralation between NTG Nordic and GRENKELEASING

Assuming the 90 days trading horizon NTG Nordic Transport is expected to generate 1.09 times more return on investment than GRENKELEASING. However, NTG Nordic is 1.09 times more volatile than GRENKELEASING Dusseldorf. It trades about 0.01 of its potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about -0.02 per unit of risk. If you would invest  3,425  in NTG Nordic Transport on October 10, 2024 and sell it today you would earn a total of  25.00  from holding NTG Nordic Transport or generate 0.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

NTG Nordic Transport  vs.  GRENKELEASING Dusseldorf

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 unsteady 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.

GRENKELEASING Duss

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GRENKELEASING Dusseldorf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward-looking indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with NTG Nordic and GRENKELEASING

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

The idea behind NTG Nordic Transport and GRENKELEASING Dusseldorf 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.