Correlation Between Neinor Homes and Squirrel Media
Can any of the company-specific risk be diversified away by investing in both Neinor Homes and Squirrel Media 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 Squirrel Media 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 Squirrel Media SA, you can compare the effects of market volatilities on Neinor Homes and Squirrel Media 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 Squirrel Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neinor Homes and Squirrel Media.
Diversification Opportunities for Neinor Homes and Squirrel Media
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Neinor and Squirrel is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SLU and Squirrel Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squirrel Media 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 Squirrel Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squirrel Media SA has no effect on the direction of Neinor Homes i.e., Neinor Homes and Squirrel Media go up and down completely randomly.
Pair Corralation between Neinor Homes and Squirrel Media
Assuming the 90 days trading horizon Neinor Homes SLU is expected to generate 0.57 times more return on investment than Squirrel Media. However, Neinor Homes SLU is 1.75 times less risky than Squirrel Media. It trades about 0.11 of its potential returns per unit of risk. Squirrel Media SA is currently generating about -0.03 per unit of risk. If you would invest 694.00 in Neinor Homes SLU on August 24, 2024 and sell it today you would earn a total of 836.00 from holding Neinor Homes SLU or generate 120.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neinor Homes SLU vs. Squirrel Media SA
Performance |
| Timeline |
| Neinor Homes SLU |
| Squirrel Media SA |
Neinor Homes and Squirrel Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neinor Homes and Squirrel Media
The main advantage of trading using opposite Neinor Homes and Squirrel Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neinor Homes position performs unexpectedly, Squirrel Media 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 Squirrel Media will offset losses from the drop in Squirrel Media's long position.| Neinor Homes vs. International Consolidated Airlines | Neinor Homes vs. Merlin Properties SOCIMI | Neinor Homes vs. Aena SA | Neinor Homes vs. Acerinox |
| Squirrel Media vs. Amadeus IT Group | Squirrel Media vs. Indra A | Squirrel Media vs. Global Dominion Access | Squirrel Media vs. Amper SA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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