Correlation Between Nanoform Finland and Isofol Medical
Can any of the company-specific risk be diversified away by investing in both Nanoform Finland and Isofol Medical 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 Nanoform Finland and Isofol Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanoform Finland Plc and Isofol Medical AB, you can compare the effects of market volatilities on Nanoform Finland and Isofol Medical 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 Nanoform Finland with a short position of Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanoform Finland and Isofol Medical.
Diversification Opportunities for Nanoform Finland and Isofol Medical
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanoform and Isofol is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nanoform Finland Plc and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical AB and Nanoform Finland 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 Nanoform Finland Plc are associated (or correlated) with Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Nanoform Finland i.e., Nanoform Finland and Isofol Medical go up and down completely randomly.
Pair Corralation between Nanoform Finland and Isofol Medical
Assuming the 90 days trading horizon Nanoform Finland Plc is expected to generate 1.39 times more return on investment than Isofol Medical. However, Nanoform Finland is 1.39 times more volatile than Isofol Medical AB. It trades about 0.09 of its potential returns per unit of risk. Isofol Medical AB is currently generating about -0.22 per unit of risk. If you would invest 1,562 in Nanoform Finland Plc on September 1, 2024 and sell it today you would earn a total of 138.00 from holding Nanoform Finland Plc or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nanoform Finland Plc vs. Isofol Medical AB
Performance |
| Timeline |
| Nanoform Finland Plc |
| Isofol Medical AB |
Nanoform Finland and Isofol Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanoform Finland and Isofol Medical
The main advantage of trading using opposite Nanoform Finland and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanoform Finland position performs unexpectedly, Isofol Medical 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 Isofol Medical will offset losses from the drop in Isofol Medical's long position.| Nanoform Finland vs. Lundin Mining | Nanoform Finland vs. Swedbank AB | Nanoform Finland vs. MTI Investment SE | Nanoform Finland vs. Train Alliance Sweden |
| Isofol Medical vs. XSpray Pharma AB | Isofol Medical vs. Oncopeptides AB | Isofol Medical vs. Hansa Biopharma AB | Isofol Medical vs. Alligator Bioscience 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 CEOs Directory module to screen CEOs from public companies around the world.
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