Correlation Between DOW and Nordea Invest

By analyzing existing cross correlation between DOW and Nordea Invest Europe you can compare the effects of market volatilities on DOW and Nordea Invest 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 DOW with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of DOW and Nordea Invest.

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Can any of the company-specific risk be diversified away by investing in both DOW and Nordea Invest at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing DOW and Nordea Invest into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for DOW and Nordea Invest

0.08
Correlation
DOW
NI

Significant diversification

The 3 months correlation between DOW and Nordea is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding DOW and Nordea Invest Europe Enhanced in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Europe and DOW 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 DOW are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Europe has no effect on the direction of DOW i.e. DOW and Nordea Invest go up and down completely randomly.
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Pair Corralation between DOW and Nordea Invest

If you would invest (100.00)  in Nordea Invest Europe on May 3, 2020 and sell it today you would earn a total of  100.00  from holding Nordea Invest Europe or generate -100.0% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

DOW  vs.  Nordea Invest Europe Enhanced

 Performance (%) 
      Timeline 
 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.


 
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