Correlation Between Eastnine and NP3 Fastigheter
Can any of the company-specific risk be diversified away by investing in both Eastnine and NP3 Fastigheter 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 Eastnine and NP3 Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastnine AB and NP3 Fastigheter AB, you can compare the effects of market volatilities on Eastnine and NP3 Fastigheter 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 Eastnine with a short position of NP3 Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastnine and NP3 Fastigheter.
Diversification Opportunities for Eastnine and NP3 Fastigheter
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastnine and NP3 is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eastnine AB and NP3 Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NP3 Fastigheter AB and Eastnine 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 Eastnine AB are associated (or correlated) with NP3 Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NP3 Fastigheter AB has no effect on the direction of Eastnine i.e., Eastnine and NP3 Fastigheter go up and down completely randomly.
Pair Corralation between Eastnine and NP3 Fastigheter
Assuming the 90 days trading horizon Eastnine AB is expected to generate 1.08 times more return on investment than NP3 Fastigheter. However, Eastnine is 1.08 times more volatile than NP3 Fastigheter AB. It trades about 0.1 of its potential returns per unit of risk. NP3 Fastigheter AB is currently generating about -0.01 per unit of risk. If you would invest 4,540 in Eastnine AB on September 13, 2024 and sell it today you would earn a total of 208.00 from holding Eastnine AB or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastnine AB vs. NP3 Fastigheter AB
Performance |
| Timeline |
| Eastnine AB |
| NP3 Fastigheter AB |
Eastnine and NP3 Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastnine and NP3 Fastigheter
The main advantage of trading using opposite Eastnine and NP3 Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastnine position performs unexpectedly, NP3 Fastigheter 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 NP3 Fastigheter will offset losses from the drop in NP3 Fastigheter's long position.| Eastnine vs. Catella AB | Eastnine vs. Catella AB A | Eastnine vs. KABE Group AB | Eastnine vs. IAR Systems Group |
| NP3 Fastigheter vs. Platzer Fastigheter Holding | NP3 Fastigheter vs. AB Sagax | NP3 Fastigheter vs. Nyfosa AB | NP3 Fastigheter vs. Dios Fastigheter 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |