Correlation Between Neinor Homes and Iffe Futura

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Neinor Homes and Iffe Futura 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 Iffe Futura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neinor Homes SLU and Iffe Futura SA, you can compare the effects of market volatilities on Neinor Homes and Iffe Futura 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 Iffe Futura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neinor Homes and Iffe Futura.

Diversification Opportunities for Neinor Homes and Iffe Futura

0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Neinor and Iffe is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SLU and Iffe Futura SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iffe Futura SA 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 SLU are associated (or correlated) with Iffe Futura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iffe Futura SA has no effect on the direction of Neinor Homes i.e., Neinor Homes and Iffe Futura go up and down completely randomly.

Pair Corralation between Neinor Homes and Iffe Futura

Assuming the 90 days trading horizon Neinor Homes SLU is expected to generate 0.56 times more return on investment than Iffe Futura. However, Neinor Homes SLU is 1.8 times less risky than Iffe Futura. It trades about 0.3 of its potential returns per unit of risk. Iffe Futura SA is currently generating about 0.15 per unit of risk. If you would invest  1,510  in Neinor Homes SLU on September 25, 2024 and sell it today you would earn a total of  118.00  from holding Neinor Homes SLU or generate 7.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Neinor Homes SLU  vs.  Iffe Futura SA

 Performance 
       Timeline  
Neinor Homes SLU 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Neinor Homes SLU are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Neinor Homes exhibited solid returns over the last few months and may actually be approaching a breakup point.
Iffe Futura SA 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Iffe Futura SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Iffe Futura may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Neinor Homes and Iffe Futura Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Neinor Homes and Iffe Futura

The main advantage of trading using opposite Neinor Homes and Iffe Futura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neinor Homes position performs unexpectedly, Iffe Futura 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 Iffe Futura will offset losses from the drop in Iffe Futura's long position.
The idea behind Neinor Homes SLU and Iffe Futura SA 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.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges