Correlation Between Neinor Homes and SBI Holdings
Can any of the company-specific risk be diversified away by investing in both Neinor Homes and SBI Holdings 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 SBI Holdings 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 SBI Holdings, you can compare the effects of market volatilities on Neinor Homes and SBI Holdings 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 SBI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neinor Homes and SBI Holdings.
Diversification Opportunities for Neinor Homes and SBI Holdings
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Neinor and SBI is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SA and SBI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Holdings 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 SBI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Holdings has no effect on the direction of Neinor Homes i.e., Neinor Homes and SBI Holdings go up and down completely randomly.
Pair Corralation between Neinor Homes and SBI Holdings
Assuming the 90 days trading horizon Neinor Homes SA is expected to generate 0.99 times more return on investment than SBI Holdings. However, Neinor Homes SA is 1.01 times less risky than SBI Holdings. It trades about 0.09 of its potential returns per unit of risk. SBI Holdings is currently generating about 0.04 per unit of risk. If you would invest 749.00 in Neinor Homes SA on November 7, 2024 and sell it today you would earn a total of 917.00 from holding Neinor Homes SA or generate 122.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neinor Homes SA vs. SBI Holdings
Performance |
| Timeline |
| Neinor Homes SA |
| SBI Holdings |
Neinor Homes and SBI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neinor Homes and SBI Holdings
The main advantage of trading using opposite Neinor Homes and SBI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neinor Homes position performs unexpectedly, SBI Holdings 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 SBI Holdings will offset losses from the drop in SBI Holdings' long position.| Neinor Homes vs. PennantPark Investment | Neinor Homes vs. BORR DRILLING NEW | Neinor Homes vs. SEI INVESTMENTS | Neinor Homes vs. SLR Investment Corp |
| SBI Holdings vs. Aristocrat Leisure Limited | SBI Holdings vs. Playtech plc | SBI Holdings vs. Calibre Mining Corp | SBI Holdings vs. Perseus Mining Limited |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |