Correlation Between Khiron Life and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both Khiron Life and NTG Nordic 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 Khiron Life and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and NTG Nordic Transport, you can compare the effects of market volatilities on Khiron Life and NTG Nordic 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 Khiron Life with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and NTG Nordic.
Diversification Opportunities for Khiron Life and NTG Nordic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and NTG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of Khiron Life i.e., Khiron Life and NTG Nordic go up and down completely randomly.
Pair Corralation between Khiron Life and NTG Nordic
If you would invest 2.16 in Khiron Life Sciences on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Khiron Life Sciences or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.46% |
Values | Daily Returns |
Khiron Life Sciences vs. NTG Nordic Transport
Performance |
Timeline |
Khiron Life Sciences |
NTG Nordic Transport |
Khiron Life and NTG Nordic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Khiron Life and NTG Nordic
The main advantage of trading using opposite Khiron Life and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc | Khiron Life vs. Apple Inc |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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