Correlation Between Neinor Homes and VPower Group
Can any of the company-specific risk be diversified away by investing in both Neinor Homes and VPower 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 Neinor Homes and VPower Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neinor Homes SA and VPower Group International, you can compare the effects of market volatilities on Neinor Homes and VPower 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 Neinor Homes with a short position of VPower Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neinor Homes and VPower Group.
Diversification Opportunities for Neinor Homes and VPower Group
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Neinor and VPower is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SA and VPower Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VPower Group Interna and Neinor Homes 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 Neinor Homes SA are associated (or correlated) with VPower Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VPower Group Interna has no effect on the direction of Neinor Homes i.e., Neinor Homes and VPower Group go up and down completely randomly.
Pair Corralation between Neinor Homes and VPower Group
Assuming the 90 days trading horizon Neinor Homes is expected to generate 4.86 times less return on investment than VPower Group. But when comparing it to its historical volatility, Neinor Homes SA is 12.58 times less risky than VPower Group. It trades about 0.19 of its potential returns per unit of risk. VPower Group International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2.15 in VPower Group International on November 7, 2024 and sell it today you would lose (0.65) from holding VPower Group International or give up 30.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neinor Homes SA vs. VPower Group International
Performance |
| Timeline |
| Neinor Homes SA |
| VPower Group Interna |
Neinor Homes and VPower Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neinor Homes and VPower Group
The main advantage of trading using opposite Neinor Homes and VPower Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neinor Homes position performs unexpectedly, VPower 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 VPower Group will offset losses from the drop in VPower Group's long position.| Neinor Homes vs. PennantPark Investment | Neinor Homes vs. BORR DRILLING NEW | Neinor Homes vs. SEI INVESTMENTS | Neinor Homes vs. SLR Investment Corp |
| VPower Group vs. ALBIS LEASING AG | VPower Group vs. WILLIS LEASE FIN | VPower Group vs. ETFS Coffee ETC | VPower Group vs. JAPAN AIRLINES |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |