Correlation Between Nordic Semiconductor and Stevanato Group

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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 Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Nordic Semiconductor ASA  vs.  Stevanato Group SpA

 Performance 
       Timeline  
Nordic Semiconductor ASA 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Nordic Semiconductor ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Stevanato Group SpA 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Stevanato Group SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Stevanato Group is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

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.
The idea behind Nordic Semiconductor ASA and Stevanato Group SpA 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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