Correlation Between NTG Nordic and Formuepleje Mix

Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Formuepleje Mix 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 NTG Nordic and Formuepleje Mix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NTG Nordic Transport and Formuepleje Mix Medium, you can compare the effects of market volatilities on NTG Nordic and Formuepleje Mix 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 NTG Nordic with a short position of Formuepleje Mix. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Formuepleje Mix.

Diversification Opportunities for NTG Nordic and Formuepleje Mix

-0.81

Correlation Coefficient

NTG Nordic  Formuepleje Mix

Pay attention - limited upside

The 3 months correlation between NTG and Formuepleje is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Formuepleje Mix Medium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formuepleje Mix Medium and NTG Nordic 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 NTG Nordic Transport are associated (or correlated) with Formuepleje Mix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formuepleje Mix Medium has no effect on the direction of NTG Nordic i.e., NTG Nordic and Formuepleje Mix go up and down completely randomly.

Pair Corralation between NTG Nordic and Formuepleje Mix

Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Formuepleje Mix. In addition to that, NTG Nordic is 4.15 times more volatile than Formuepleje Mix Medium. It trades about -0.14 of its total potential returns per unit of risk. Formuepleje Mix Medium is currently generating about 0.2 per unit of volatility. If you would invest  27,440  in Formuepleje Mix Medium on April 24, 2025 and sell it today you would earn a total of  1,680  from holding Formuepleje Mix Medium or generate 6.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	90.0%
Values	Daily Returns

NTG Nordic Transport  vs.  Formuepleje Mix Medium

NTG Nordic Transport

Risk-Adjusted Performance

Very Weak

Over the last 90 days NTG Nordic Transport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Formuepleje Mix Medium

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Formuepleje Mix Medium are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating forward indicators, Formuepleje Mix may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with NTG Nordic and Formuepleje Mix

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

The idea behind NTG Nordic Transport and Formuepleje Mix Medium 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.