Correlation Between Fasadgruppen Group and NCC AB
Can any of the company-specific risk be diversified away by investing in both Fasadgruppen Group and NCC AB 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 Fasadgruppen Group and NCC AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fasadgruppen Group AB and NCC AB, you can compare the effects of market volatilities on Fasadgruppen Group and NCC AB 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 Fasadgruppen Group with a short position of NCC AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fasadgruppen Group and NCC AB.
Diversification Opportunities for Fasadgruppen Group and NCC AB
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fasadgruppen and NCC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fasadgruppen Group AB and NCC AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCC AB and Fasadgruppen Group 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 Fasadgruppen Group AB are associated (or correlated) with NCC AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCC AB has no effect on the direction of Fasadgruppen Group i.e., Fasadgruppen Group and NCC AB go up and down completely randomly.
Pair Corralation between Fasadgruppen Group and NCC AB
Assuming the 90 days horizon Fasadgruppen Group AB is expected to under-perform the NCC AB. In addition to that, Fasadgruppen Group is 1.51 times more volatile than NCC AB. It trades about -0.13 of its total potential returns per unit of risk. NCC AB is currently generating about 0.11 per unit of volatility. If you would invest 13,266 in NCC AB on August 31, 2024 and sell it today you would earn a total of 2,934 from holding NCC AB or generate 22.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fasadgruppen Group AB vs. NCC AB
Performance |
| Timeline |
| Fasadgruppen Group |
| NCC AB |
Fasadgruppen Group and NCC AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fasadgruppen Group and NCC AB
The main advantage of trading using opposite Fasadgruppen Group and NCC AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fasadgruppen Group position performs unexpectedly, NCC AB 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 NCC AB will offset losses from the drop in NCC AB's long position.| Fasadgruppen Group vs. Green Landscaping Group | Fasadgruppen Group vs. Volati AB | Fasadgruppen Group vs. Instalco Intressenter AB | Fasadgruppen Group vs. Sdiptech 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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