Correlation Between NORWEGIAN AIR and Marsh McLennan

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

Diversification Opportunities for NORWEGIAN AIR and Marsh McLennan

0.0

Correlation Coefficient

NORWEGIAN AIR  Marsh McLennan

Pay attention - limited upside

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

Pair Corralation between NORWEGIAN AIR and Marsh McLennan

If you would invest  93.00  in NORWEGIAN AIR SHUT on December 22, 2024 and sell it today you would earn a total of  8.00  from holding NORWEGIAN AIR SHUT or generate 8.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

NORWEGIAN AIR SHUT  vs.  Marsh McLennan Companies

NORWEGIAN AIR SHUT

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NORWEGIAN AIR SHUT are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, NORWEGIAN AIR may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Marsh McLennan Companies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Marsh McLennan Companies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Marsh McLennan is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with NORWEGIAN AIR and Marsh McLennan

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

The idea behind NORWEGIAN AIR SHUT and Marsh McLennan Companies 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.