Correlation Between Nordic Semiconductor and SoftBrands
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and SoftBrands 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 Nordic Semiconductor and SoftBrands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and SoftBrands, you can compare the effects of market volatilities on Nordic Semiconductor and SoftBrands 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 Nordic Semiconductor with a short position of SoftBrands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and SoftBrands.
Diversification Opportunities for Nordic Semiconductor and SoftBrands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nordic and SoftBrands is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and SoftBrands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoftBrands and Nordic Semiconductor 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 Nordic Semiconductor ASA are associated (or correlated) with SoftBrands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoftBrands has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and SoftBrands go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and SoftBrands
If you would invest (100.00) in SoftBrands on September 23, 2024 and sell it today you would earn a total of 100.00 from holding SoftBrands or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Nordic Semiconductor ASA vs. SoftBrands
Performance |
Timeline |
Nordic Semiconductor ASA |
SoftBrands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nordic Semiconductor and SoftBrands Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nordic Semiconductor and SoftBrands
The main advantage of trading using opposite Nordic Semiconductor and SoftBrands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, SoftBrands 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 SoftBrands will offset losses from the drop in SoftBrands' long position.Nordic Semiconductor vs. Alphawave IP Group | Nordic Semiconductor vs. Arteris | Nordic Semiconductor vs. Odyssey Semiconductor Technologies | Nordic Semiconductor vs. Rohm Co Ltd |
SoftBrands vs. Tower Semiconductor | SoftBrands vs. Ryanair Holdings PLC | SoftBrands vs. KLA Tencor | SoftBrands vs. Nordic Semiconductor ASA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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