Correlation Between K Fast and NCAB
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By analyzing existing cross correlation between K Fast Holding AB and NCAB Group, you can compare the effects of market volatilities on K Fast and NCAB 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 K Fast with a short position of NCAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of K Fast and NCAB.
Diversification Opportunities for K Fast and NCAB
Weak diversification
The 3 months correlation between KFAST-B and NCAB is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding K Fast Holding AB and NCAB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCAB Group and K Fast 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 K Fast Holding AB are associated (or correlated) with NCAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCAB Group has no effect on the direction of K Fast i.e., K Fast and NCAB go up and down completely randomly.
Pair Corralation between K Fast and NCAB
Assuming the 90 days trading horizon K Fast Holding AB is expected to generate 1.05 times more return on investment than NCAB. However, K Fast is 1.05 times more volatile than NCAB Group. It trades about 0.01 of its potential returns per unit of risk. NCAB Group is currently generating about -0.02 per unit of risk. If you would invest 2,014 in K Fast Holding AB on August 31, 2024 and sell it today you would lose (16.00) from holding K Fast Holding AB or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
K Fast Holding AB vs. NCAB Group
Performance |
| Timeline |
| K Fast Holding |
| NCAB Group |
K Fast and NCAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with K Fast and NCAB
The main advantage of trading using opposite K Fast and NCAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if K Fast position performs unexpectedly, NCAB 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 NCAB will offset losses from the drop in NCAB's long position.| K Fast vs. Fastighets AB Balder | K Fast vs. Nyfosa AB | K Fast vs. Dios Fastigheter AB | K Fast vs. Corem Property Group |
| NCAB vs. MIPS AB | NCAB vs. Hexatronic Group AB | NCAB vs. Lagercrantz Group AB | NCAB vs. Vitec Software Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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