Correlation Analysis Between ETFS Wheat and Nordea Bank

Overlapping area represents the amount of risk that can be diversified away by holding ETFS Commodity Securities Ltd and Nordea Bank AB 0JNL in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank AB and ETFS Wheat 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 ETFS Wheat ETC are associated (or correlated) with Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank AB has no effect on the direction of ETFS Wheat i.e. ETFS Wheat and Nordea Bank go up and down completely randomly.