Correlation Between NORWEGIAN AIR and DISTRICT METALS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both NORWEGIAN AIR and DISTRICT METALS 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 NORWEGIAN AIR and DISTRICT METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORWEGIAN AIR SHUT and DISTRICT METALS, you can compare the effects of market volatilities on NORWEGIAN AIR and DISTRICT METALS 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 NORWEGIAN AIR with a short position of DISTRICT METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORWEGIAN AIR and DISTRICT METALS.

Diversification Opportunities for NORWEGIAN AIR and DISTRICT METALS

-0.05
  Correlation Coefficient

Good diversification

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

Pair Corralation between NORWEGIAN AIR and DISTRICT METALS

Assuming the 90 days trading horizon NORWEGIAN AIR SHUT is expected to under-perform the DISTRICT METALS. In addition to that, NORWEGIAN AIR is 1.07 times more volatile than DISTRICT METALS. It trades about -0.05 of its total potential returns per unit of risk. DISTRICT METALS is currently generating about 0.01 per unit of volatility. If you would invest  23.00  in DISTRICT METALS on September 20, 2024 and sell it today you would earn a total of  0.00  from holding DISTRICT METALS or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

NORWEGIAN AIR SHUT  vs.  DISTRICT METALS

 Performance 
       Timeline  
NORWEGIAN AIR SHUT 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NORWEGIAN AIR SHUT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, NORWEGIAN AIR is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
DISTRICT METALS 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in DISTRICT METALS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DISTRICT METALS reported solid returns over the last few months and may actually be approaching a breakup point.

NORWEGIAN AIR and DISTRICT METALS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NORWEGIAN AIR and DISTRICT METALS

The main advantage of trading using opposite NORWEGIAN AIR and DISTRICT METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORWEGIAN AIR position performs unexpectedly, DISTRICT METALS 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 DISTRICT METALS will offset losses from the drop in DISTRICT METALS's long position.
The idea behind NORWEGIAN AIR SHUT and DISTRICT METALS 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.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Transaction History
View history of all your transactions and understand their impact on performance