Correlation Between PICKN PAY and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both PICKN PAY 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 PICKN PAY and NTG Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICKN PAY STORES and NTG Nordic Transport, you can compare the effects of market volatilities on PICKN PAY 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 PICKN PAY with a short position of NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICKN PAY and NTG Nordic.
Diversification Opportunities for PICKN PAY and NTG Nordic
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PICKN and NTG is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding PICKN PAY STORES 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 PICKN PAY 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 PICKN PAY STORES 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 PICKN PAY i.e., PICKN PAY and NTG Nordic go up and down completely randomly.
Pair Corralation between PICKN PAY and NTG Nordic
Assuming the 90 days trading horizon PICKN PAY STORES is expected to under-perform the NTG Nordic. In addition to that, PICKN PAY is 1.24 times more volatile than NTG Nordic Transport. It trades about -0.02 of its total potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.02 per unit of volatility. If you would invest 3,255 in NTG Nordic Transport on September 23, 2024 and sell it today you would earn a total of 185.00 from holding NTG Nordic Transport or generate 5.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PICKN PAY STORES vs. NTG Nordic Transport
Performance |
Timeline |
PICKN PAY STORES |
NTG Nordic Transport |
PICKN PAY and NTG Nordic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PICKN PAY and NTG Nordic
The main advantage of trading using opposite PICKN PAY and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICKN PAY 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.The idea behind PICKN PAY STORES and NTG Nordic Transport 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.NTG Nordic vs. GREENX METALS LTD | NTG Nordic vs. Apollo Investment Corp | NTG Nordic vs. HK Electric Investments | NTG Nordic vs. Strategic Investments AS |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |