Correlation Between Nordea 1 and SISF BRIC

Can any of the company-specific risk be diversified away by investing in both Nordea 1 and SISF BRIC 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 SISF BRIC 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 SISF BRIC AC, you can compare the effects of market volatilities on Nordea 1 and SISF BRIC 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 SISF BRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea 1 and SISF BRIC.

Diversification Opportunities for Nordea 1 and SISF BRIC

0.0

Correlation Coefficient

Nordea 1  SISF BRIC

Pay attention - limited upside

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

Pair Corralation between Nordea 1 and SISF BRIC

If you would invest  18,595  in SISF BRIC AC on October 4, 2024 and sell it today you would earn a total of  2,740  from holding SISF BRIC AC or generate 14.74% 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.  SISF BRIC AC

Nordea 1 SICAV

Risk-Adjusted Performance

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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.

SISF BRIC AC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SISF BRIC AC has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, SISF BRIC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Nordea 1 and SISF BRIC

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

The idea behind Nordea 1 SICAV and SISF BRIC AC 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.