Correlation Between Norwegian Air and Pierre Et

Can any of the company-specific risk be diversified away by investing in both Norwegian Air and Pierre Et 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 Norwegian Air and Pierre Et into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Norwegian Air Shuttle and Pierre et Vacances, you can compare the effects of market volatilities on Norwegian Air and Pierre Et 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 Norwegian Air with a short position of Pierre Et. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norwegian Air and Pierre Et.

Diversification Opportunities for Norwegian Air and Pierre Et

0.59

Correlation Coefficient

Norwegian Air  Pierre Et

Very weak diversification

The 3 months correlation between Norwegian and Pierre is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Norwegian Air Shuttle and Pierre et Vacances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pierre et Vacances and Norwegian Air 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 Norwegian Air Shuttle are associated (or correlated) with Pierre Et. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pierre et Vacances has no effect on the direction of Norwegian Air i.e., Norwegian Air and Pierre Et go up and down completely randomly.

Pair Corralation between Norwegian Air and Pierre Et

Assuming the 90 days trading horizon Norwegian Air Shuttle is expected to generate 0.99 times more return on investment than Pierre Et. However, Norwegian Air Shuttle is 1.01 times less risky than Pierre Et. It trades about 0.17 of its potential returns per unit of risk. Pierre et Vacances is currently generating about 0.1 per unit of risk. If you would invest  1,318  in Norwegian Air Shuttle on April 24, 2025 and sell it today you would earn a total of  414.00  from holding Norwegian Air Shuttle or generate 31.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Norwegian Air Shuttle  vs.  Pierre et Vacances

Norwegian Air Shuttle

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Norwegian Air Shuttle are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Norwegian Air disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pierre et Vacances

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pierre et Vacances are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Pierre Et reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Norwegian Air and Pierre Et

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

The idea behind Norwegian Air Shuttle and Pierre et Vacances 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.