Correlation Between New Nordic and AlzeCure Pharma
Can any of the company-specific risk be diversified away by investing in both New Nordic and AlzeCure Pharma 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 New Nordic and AlzeCure Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Nordic Healthbrands and AlzeCure Pharma, you can compare the effects of market volatilities on New Nordic and AlzeCure Pharma 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 New Nordic with a short position of AlzeCure Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Nordic and AlzeCure Pharma.
Diversification Opportunities for New Nordic and AlzeCure Pharma
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and AlzeCure is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding New Nordic Healthbrands and AlzeCure Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlzeCure Pharma and New 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 New Nordic Healthbrands are associated (or correlated) with AlzeCure Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlzeCure Pharma has no effect on the direction of New Nordic i.e., New Nordic and AlzeCure Pharma go up and down completely randomly.
Pair Corralation between New Nordic and AlzeCure Pharma
Assuming the 90 days trading horizon New Nordic Healthbrands is expected to generate 0.75 times more return on investment than AlzeCure Pharma. However, New Nordic Healthbrands is 1.34 times less risky than AlzeCure Pharma. It trades about -0.05 of its potential returns per unit of risk. AlzeCure Pharma is currently generating about -0.21 per unit of risk. If you would invest 2,420 in New Nordic Healthbrands on September 2, 2025 and sell it today you would lose (230.00) from holding New Nordic Healthbrands or give up 9.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.48% |
| Values | Daily Returns |
New Nordic Healthbrands vs. AlzeCure Pharma
Performance |
| Timeline |
| New Nordic Healthbrands |
| AlzeCure Pharma |
New Nordic and AlzeCure Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Nordic and AlzeCure Pharma
The main advantage of trading using opposite New Nordic and AlzeCure Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Nordic position performs unexpectedly, AlzeCure Pharma 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 AlzeCure Pharma will offset losses from the drop in AlzeCure Pharma's long position.| New Nordic vs. AVTECH Sweden AB | New Nordic vs. Lime Technologies AB | New Nordic vs. Sdiptech AB | New Nordic vs. High Coast Distillery |
| AlzeCure Pharma vs. Serstech AB | AlzeCure Pharma vs. GiG Software PLC | AlzeCure Pharma vs. Vitec Software Group | AlzeCure Pharma vs. Neola Medical 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |