Correlation Between Midsona AB and NetJobs Group
Can any of the company-specific risk be diversified away by investing in both Midsona AB and NetJobs Group 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 Midsona AB and NetJobs Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midsona AB and NetJobs Group AB, you can compare the effects of market volatilities on Midsona AB and NetJobs 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 Midsona AB with a short position of NetJobs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midsona AB and NetJobs Group.
Diversification Opportunities for Midsona AB and NetJobs Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Midsona and NetJobs is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Midsona AB and NetJobs Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetJobs Group AB and Midsona AB 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 Midsona AB are associated (or correlated) with NetJobs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetJobs Group AB has no effect on the direction of Midsona AB i.e., Midsona AB and NetJobs Group go up and down completely randomly.
Pair Corralation between Midsona AB and NetJobs Group
If you would invest 1,200 in Midsona AB on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Midsona AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Midsona AB vs. NetJobs Group AB
Performance |
| Timeline |
| Midsona AB |
| NetJobs Group AB |
Midsona AB and NetJobs Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midsona AB and NetJobs Group
The main advantage of trading using opposite Midsona AB and NetJobs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midsona AB position performs unexpectedly, NetJobs 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 NetJobs Group will offset losses from the drop in NetJobs Group's long position.| Midsona AB vs. Midsona AB | Midsona AB vs. Know IT AB | Midsona AB vs. Probi AB | Midsona AB vs. BTS Group AB |
| NetJobs Group vs. Online Brands Nordic | NetJobs Group vs. Clean Motion AB | NetJobs Group vs. Mavshack publ AB | NetJobs Group vs. Nicoccino Holding 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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