Correlation Between Nordic Semiconductor and Stevanato Group
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and Stevanato Group 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 Semiconductor and Stevanato Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Stevanato Group SpA, you can compare the effects of market volatilities on Nordic Semiconductor and Stevanato Group 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 Semiconductor with a short position of Stevanato Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Stevanato Group.
Diversification Opportunities for Nordic Semiconductor and Stevanato Group
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordic and Stevanato is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Stevanato Group SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stevanato Group SpA and Nordic Semiconductor 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 Semiconductor ASA are associated (or correlated) with Stevanato Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stevanato Group SpA has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and Stevanato Group go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Stevanato Group
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the Stevanato Group. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nordic Semiconductor ASA is 1.19 times less risky than Stevanato Group. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Stevanato Group SpA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,415 in Stevanato Group SpA on September 5, 2025 and sell it today you would lose (108.00) from holding Stevanato Group SpA or give up 4.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Stevanato Group SpA
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Stevanato Group SpA |
Nordic Semiconductor and Stevanato Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Stevanato Group
The main advantage of trading using opposite Nordic Semiconductor and Stevanato Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, Stevanato Group 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 Stevanato Group will offset losses from the drop in Stevanato Group's long position.| Nordic Semiconductor vs. NVIDIA | Nordic Semiconductor vs. Broadcom | Nordic Semiconductor vs. Taiwan Semiconductor Manufacturing | Nordic Semiconductor vs. Advanced Micro Devices |
| Stevanato Group vs. Retail Food Group | Stevanato Group vs. Where Food Comes | Stevanato Group vs. NorthPoint Communications Group | Stevanato Group vs. Romana Food Brands |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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