Correlation Between Gigas Hosting and NBI Bearings
Can any of the company-specific risk be diversified away by investing in both Gigas Hosting and NBI Bearings 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 Gigas Hosting and NBI Bearings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigas Hosting SA and NBI Bearings Europe, you can compare the effects of market volatilities on Gigas Hosting and NBI Bearings 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 Gigas Hosting with a short position of NBI Bearings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigas Hosting and NBI Bearings.
Diversification Opportunities for Gigas Hosting and NBI Bearings
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gigas and NBI is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gigas Hosting SA and NBI Bearings Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBI Bearings Europe and Gigas Hosting 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 Gigas Hosting SA are associated (or correlated) with NBI Bearings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBI Bearings Europe has no effect on the direction of Gigas Hosting i.e., Gigas Hosting and NBI Bearings go up and down completely randomly.
Pair Corralation between Gigas Hosting and NBI Bearings
Assuming the 90 days trading horizon Gigas Hosting SA is expected to generate 1.67 times more return on investment than NBI Bearings. However, Gigas Hosting is 1.67 times more volatile than NBI Bearings Europe. It trades about -0.01 of its potential returns per unit of risk. NBI Bearings Europe is currently generating about -0.02 per unit of risk. If you would invest 670.00 in Gigas Hosting SA on November 3, 2024 and sell it today you would lose (60.00) from holding Gigas Hosting SA or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gigas Hosting SA vs. NBI Bearings Europe
Performance |
| Timeline |
| Gigas Hosting SA |
| NBI Bearings Europe |
Gigas Hosting and NBI Bearings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigas Hosting and NBI Bearings
The main advantage of trading using opposite Gigas Hosting and NBI Bearings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigas Hosting position performs unexpectedly, NBI Bearings 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 NBI Bearings will offset losses from the drop in NBI Bearings' long position.| Gigas Hosting vs. Naturhouse Health SA | Gigas Hosting vs. Neinor Homes SLU | Gigas Hosting vs. Vytrus Biotech SA | Gigas Hosting vs. Inhome Prime Properties |
| NBI Bearings vs. Metrovacesa SA | NBI Bearings vs. Elecnor SA | NBI Bearings vs. Mapfre | NBI Bearings vs. Tander Inversiones SOCIMI |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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