Correlation Between Duni AB and NetJobs Group
Can any of the company-specific risk be diversified away by investing in both Duni AB and NetJobs 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 Duni AB and NetJobs Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duni AB and NetJobs Group AB, you can compare the effects of market volatilities on Duni AB and NetJobs 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 Duni AB with a short position of NetJobs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duni AB and NetJobs Group.
Diversification Opportunities for Duni AB and NetJobs Group
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Duni and NetJobs is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Duni AB and NetJobs Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetJobs Group AB and Duni AB 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 Duni AB are associated (or correlated) with NetJobs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetJobs Group AB has no effect on the direction of Duni AB i.e., Duni AB and NetJobs Group go up and down completely randomly.
Pair Corralation between Duni AB and NetJobs Group
Assuming the 90 days trading horizon Duni AB is expected to generate 0.32 times more return on investment than NetJobs Group. However, Duni AB is 3.09 times less risky than NetJobs Group. It trades about 0.02 of its potential returns per unit of risk. NetJobs Group AB is currently generating about -0.02 per unit of risk. If you would invest 8,003 in Duni AB on September 2, 2024 and sell it today you would earn a total of 987.00 from holding Duni AB or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duni AB vs. NetJobs Group AB
Performance |
| Timeline |
| Duni AB |
| NetJobs Group AB |
Duni AB and NetJobs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duni AB and NetJobs Group
The main advantage of trading using opposite Duni AB and NetJobs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duni AB position performs unexpectedly, NetJobs 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 NetJobs Group will offset losses from the drop in NetJobs Group's long position.The idea behind Duni AB and NetJobs Group AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| NetJobs Group vs. Samhllsbyggnadsbolaget i Norden | NetJobs Group vs. Sinch AB | NetJobs Group vs. Embracer Group AB | NetJobs Group vs. Evolution 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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