Correlation Between Nordea 1 and Impact ISR

Can any of the company-specific risk be diversified away by investing in both Nordea 1 and Impact ISR 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 Nordea 1 and Impact ISR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nordea 1 SICAV and Impact ISR Performance, you can compare the effects of market volatilities on Nordea 1 and Impact ISR 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 Nordea 1 with a short position of Impact ISR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea 1 and Impact ISR.

Diversification Opportunities for Nordea 1 and Impact ISR

0.0

Correlation Coefficient

Nordea 1  Impact ISR

Pay attention - limited upside

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

Pair Corralation between Nordea 1 and Impact ISR

If you would invest (100.00) in Nordea 1 SICAV on September 23, 2024 and sell it today you would earn a total of  100.00  from holding Nordea 1 SICAV 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

Nordea 1 SICAV  vs.  Impact ISR Performance

Nordea 1 SICAV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nordea 1 SICAV has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Nordea 1 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Impact ISR Performance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impact ISR Performance has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable basic indicators, Impact ISR is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Nordea 1 and Impact ISR

The main advantage of trading using opposite Nordea 1 and Impact ISR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea 1 position performs unexpectedly, Impact ISR 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 Impact ISR will offset losses from the drop in Impact ISR's long position.

The idea behind Nordea 1 SICAV and Impact ISR Performance 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.