Correlation Between NTG Nordic and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and SINGAPORE POST 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 NTG Nordic and SINGAPORE POST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NTG Nordic Transport and SINGAPORE POST, you can compare the effects of market volatilities on NTG Nordic and SINGAPORE POST 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 NTG Nordic with a short position of SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and SINGAPORE POST.
Diversification Opportunities for NTG Nordic and SINGAPORE POST
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NTG and SINGAPORE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST and NTG Nordic 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 NTG Nordic Transport are associated (or correlated) with SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of NTG Nordic i.e., NTG Nordic and SINGAPORE POST go up and down completely randomly.
Pair Corralation between NTG Nordic and SINGAPORE POST
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the SINGAPORE POST. But the stock apears to be less risky and, when comparing its historical volatility, NTG Nordic Transport is 1.3 times less risky than SINGAPORE POST. The stock trades about -0.11 of its potential returns per unit of risk. The SINGAPORE POST is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 31.00 in SINGAPORE POST on September 23, 2024 and sell it today you would earn a total of 7.00 from holding SINGAPORE POST or generate 22.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NTG Nordic Transport vs. SINGAPORE POST
Performance |
Timeline |
NTG Nordic Transport |
SINGAPORE POST |
NTG Nordic and SINGAPORE POST Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NTG Nordic and SINGAPORE POST
The main advantage of trading using opposite NTG Nordic and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST's long position.NTG Nordic vs. MITSUBISHI STEEL MFG | NTG Nordic vs. ABO GROUP ENVIRONMENT | NTG Nordic vs. Khiron Life Sciences | NTG Nordic vs. United States Steel |
SINGAPORE POST vs. Kuehne Nagel International | SINGAPORE POST vs. ZTO EXPRESS | SINGAPORE POST vs. NIKKON HOLDINGS TD | SINGAPORE POST vs. SENKO GROUP HOLDINGS |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |