Correlation Between Orsted AS and Nordea Invest

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

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

Diversification Opportunities for Orsted AS and Nordea Invest

-0.44

Correlation Coefficient

Orsted AS  Nordea Invest

Very good diversification

The 3 months correlation between Orsted and Nordea is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Orsted AS and Nordea Invest Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Aktier and Orsted AS 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 Orsted AS 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 Aktier has no effect on the direction of Orsted AS i.e., Orsted AS and Nordea Invest go up and down completely randomly.

Pair Corralation between Orsted AS and Nordea Invest

If you would invest (100.00) in Nordea Invest Aktier on September 25, 2024 and sell it today you would earn a total of  100.00  from holding Nordea Invest Aktier or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Orsted AS  vs.  Nordea Invest Aktier

Orsted AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Orsted AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Nordea Invest Aktier

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Nordea Invest Aktier has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Nordea Invest is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Orsted AS and Nordea Invest

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

The idea behind Orsted AS and Nordea Invest Aktier 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.