Correlation Between Nordea Invest and DSV Panalpina

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

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

Diversification Opportunities for Nordea Invest and DSV Panalpina

0.9

Correlation Coefficient

Nordea Invest  DSV Panalpina

Almost no diversification

The 3 months correlation between Nordea and DSV is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Nordic and DSV Panalpina AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSV Panalpina AS and Nordea Invest 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 Nordea Invest Nordic are associated (or correlated) with DSV Panalpina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSV Panalpina AS has no effect on the direction of Nordea Invest i.e., Nordea Invest and DSV Panalpina go up and down completely randomly.

Pair Corralation between Nordea Invest and DSV Panalpina

Assuming the 90 days trading horizon Nordea Invest is expected to generate 8.28 times less return on investment than DSV Panalpina. But when comparing it to its historical volatility, Nordea Invest Nordic is 1.21 times less risky than DSV Panalpina. It trades about 0.01 of its potential returns per unit of risk. DSV Panalpina AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  108,836  in DSV Panalpina AS on March 23, 2025 and sell it today you would earn a total of  43,314  from holding DSV Panalpina AS or generate 39.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	42.68%
Values	Daily Returns

Nordea Invest Nordic  vs.  DSV Panalpina AS

Nordea Invest Nordic

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nordea Invest Nordic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Nordea Invest is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

DSV Panalpina AS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in DSV Panalpina AS are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, DSV Panalpina may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Nordea Invest and DSV Panalpina

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

The idea behind Nordea Invest Nordic and DSV Panalpina AS 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.