Correlation Between Intelbras and Nokia Oyj
Can any of the company-specific risk be diversified away by investing in both Intelbras and Nokia Oyj 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 Intelbras and Nokia Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intelbras SA and Nokia Oyj, you can compare the effects of market volatilities on Intelbras and Nokia Oyj 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 Intelbras with a short position of Nokia Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intelbras and Nokia Oyj.
Diversification Opportunities for Intelbras and Nokia Oyj
Excellent diversification
The 3 months correlation between Intelbras and Nokia is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intelbras SA and Nokia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia Oyj and Intelbras 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 Intelbras SA are associated (or correlated) with Nokia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia Oyj has no effect on the direction of Intelbras i.e., Intelbras and Nokia Oyj go up and down completely randomly.
Pair Corralation between Intelbras and Nokia Oyj
Assuming the 90 days trading horizon Intelbras SA is expected to under-perform the Nokia Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Intelbras SA is 1.17 times less risky than Nokia Oyj. The stock trades about -0.04 of its potential returns per unit of risk. The Nokia Oyj is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,375 in Nokia Oyj on August 28, 2024 and sell it today you would earn a total of 87.00 from holding Nokia Oyj or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.59% |
| Values | Daily Returns |
Intelbras SA vs. Nokia Oyj
Performance |
| Timeline |
| Intelbras SA |
| Nokia Oyj |
Intelbras and Nokia Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intelbras and Nokia Oyj
The main advantage of trading using opposite Intelbras and Nokia Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intelbras position performs unexpectedly, Nokia Oyj 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 Nokia Oyj will offset losses from the drop in Nokia Oyj's long position.| Intelbras vs. Mliuz SA | Intelbras vs. Locaweb Servios de | Intelbras vs. Pet Center Comrcio | Intelbras vs. Aeris Indstria e |
| Nokia Oyj vs. Mliuz SA | Nokia Oyj vs. Locaweb Servios de | Nokia Oyj vs. Pet Center Comrcio | Nokia Oyj vs. Aeris Indstria e |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |