Correlation Between IZafe Group and Norva24 Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between iZafe Group AB and Norva24 Group AB, you can compare the effects of market volatilities on IZafe Group and Norva24 Group 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 IZafe Group with a short position of Norva24 Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IZafe Group and Norva24 Group.
Diversification Opportunities for IZafe Group and Norva24 Group
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IZafe and Norva24 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding iZafe Group AB and Norva24 Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norva24 Group AB and IZafe 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 iZafe Group AB are associated (or correlated) with Norva24 Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norva24 Group AB has no effect on the direction of IZafe Group i.e., IZafe Group and Norva24 Group go up and down completely randomly.
Pair Corralation between IZafe Group and Norva24 Group
Assuming the 90 days trading horizon iZafe Group AB is expected to generate 2.75 times more return on investment than Norva24 Group. However, IZafe Group is 2.75 times more volatile than Norva24 Group AB. It trades about -0.05 of its potential returns per unit of risk. Norva24 Group AB is currently generating about -0.3 per unit of risk. If you would invest 22.00 in iZafe Group AB on August 28, 2024 and sell it today you would lose (2.00) from holding iZafe Group AB or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iZafe Group AB vs. Norva24 Group AB
Performance |
| Timeline |
| iZafe Group AB |
| Norva24 Group AB |
IZafe Group and Norva24 Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IZafe Group and Norva24 Group
The main advantage of trading using opposite IZafe Group and Norva24 Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZafe Group position performs unexpectedly, Norva24 Group 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 Norva24 Group will offset losses from the drop in Norva24 Group's long position.The idea behind iZafe Group AB and Norva24 Group AB 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.| Norva24 Group vs. Fasadgruppen Group AB | Norva24 Group vs. Instalco Intressenter AB | Norva24 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| 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 | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |