Correlation Between NTG Nordic and Amadeus IT
Can any of the company-specific risk be diversified away by investing in both NTG Nordic and Amadeus IT 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 Amadeus IT 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 Amadeus IT Group, you can compare the effects of market volatilities on NTG Nordic and Amadeus IT 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 Amadeus IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTG Nordic and Amadeus IT.
Diversification Opportunities for NTG Nordic and Amadeus IT
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NTG and Amadeus is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding NTG Nordic Transport and Amadeus IT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amadeus IT Group 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 Amadeus IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amadeus IT Group has no effect on the direction of NTG Nordic i.e., NTG Nordic and Amadeus IT go up and down completely randomly.
Pair Corralation between NTG Nordic and Amadeus IT
Assuming the 90 days trading horizon NTG Nordic Transport is expected to under-perform the Amadeus IT. In addition to that, NTG Nordic is 1.82 times more volatile than Amadeus IT Group. It trades about -0.08 of its total potential returns per unit of risk. Amadeus IT Group is currently generating about -0.08 per unit of volatility. If you would invest 7,022 in Amadeus IT Group on August 14, 2025 and sell it today you would lose (354.00) from holding Amadeus IT Group or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
NTG Nordic Transport vs. Amadeus IT Group
Performance |
| Timeline |
| NTG Nordic Transport |
| Amadeus IT Group |
NTG Nordic and Amadeus IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTG Nordic and Amadeus IT
The main advantage of trading using opposite NTG Nordic and Amadeus IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTG Nordic position performs unexpectedly, Amadeus IT 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 Amadeus IT will offset losses from the drop in Amadeus IT's long position.| NTG Nordic vs. SENKO GROUP HOLDINGS | NTG Nordic vs. SIVERS SEMICONDUCTORS AB | NTG Nordic vs. BANK HANDLOWY | NTG Nordic vs. Reliance Steel Aluminum |
| Amadeus IT vs. KINGBOARD CHEMICAL | Amadeus IT vs. NTG Nordic Transport | Amadeus IT vs. Television Broadcasts Limited | Amadeus IT vs. China BlueChemical |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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