Correlation Between Nordic Asia and FM Mattsson
Can any of the company-specific risk be diversified away by investing in both Nordic Asia and FM Mattsson 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 Nordic Asia and FM Mattsson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Asia Investment and FM Mattsson Mora, you can compare the effects of market volatilities on Nordic Asia and FM Mattsson 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 Nordic Asia with a short position of FM Mattsson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Asia and FM Mattsson.
Diversification Opportunities for Nordic Asia and FM Mattsson
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nordic and FMM-B is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Asia Investment and FM Mattsson Mora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FM Mattsson Mora and Nordic Asia 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 Nordic Asia Investment are associated (or correlated) with FM Mattsson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FM Mattsson Mora has no effect on the direction of Nordic Asia i.e., Nordic Asia and FM Mattsson go up and down completely randomly.
Pair Corralation between Nordic Asia and FM Mattsson
Assuming the 90 days trading horizon Nordic Asia Investment is expected to under-perform the FM Mattsson. In addition to that, Nordic Asia is 2.6 times more volatile than FM Mattsson Mora. It trades about -0.06 of its total potential returns per unit of risk. FM Mattsson Mora is currently generating about 0.04 per unit of volatility. If you would invest 5,740 in FM Mattsson Mora on September 10, 2025 and sell it today you would earn a total of 160.00 from holding FM Mattsson Mora or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Asia Investment vs. FM Mattsson Mora
Performance |
| Timeline |
| Nordic Asia Investment |
| FM Mattsson Mora |
Nordic Asia and FM Mattsson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Asia and FM Mattsson
The main advantage of trading using opposite Nordic Asia and FM Mattsson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Asia position performs unexpectedly, FM Mattsson 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 FM Mattsson will offset losses from the drop in FM Mattsson's long position.| Nordic Asia vs. SaveLend Group AB | Nordic Asia vs. Lundin Mining | Nordic Asia vs. Investment AB Oresund | Nordic Asia vs. USWE Sports AB |
| FM Mattsson vs. Byggmax Group AB | FM Mattsson vs. CTT Systems AB | FM Mattsson vs. Green Landscaping Group | FM Mattsson vs. Intellego Technologies AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |