Correlation Between Nanoform Finland and Ziccum AB
Can any of the company-specific risk be diversified away by investing in both Nanoform Finland and Ziccum AB 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 Ziccum AB 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 Ziccum AB, you can compare the effects of market volatilities on Nanoform Finland and Ziccum AB 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 Ziccum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanoform Finland and Ziccum AB.
Diversification Opportunities for Nanoform Finland and Ziccum AB
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanoform and Ziccum is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nanoform Finland Plc and Ziccum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziccum 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 Ziccum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziccum AB has no effect on the direction of Nanoform Finland i.e., Nanoform Finland and Ziccum AB go up and down completely randomly.
Pair Corralation between Nanoform Finland and Ziccum AB
Assuming the 90 days trading horizon Nanoform Finland Plc is expected to generate 0.65 times more return on investment than Ziccum AB. However, Nanoform Finland Plc is 1.55 times less risky than Ziccum AB. It trades about 0.01 of its potential returns per unit of risk. Ziccum AB is currently generating about -0.1 per unit of risk. If you would invest 1,845 in Nanoform Finland Plc on September 4, 2024 and sell it today you would lose (163.00) from holding Nanoform Finland Plc or give up 8.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanoform Finland Plc vs. Ziccum AB
Performance |
| Timeline |
| Nanoform Finland Plc |
| Ziccum AB |
Nanoform Finland and Ziccum AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanoform Finland and Ziccum AB
The main advantage of trading using opposite Nanoform Finland and Ziccum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanoform Finland position performs unexpectedly, Ziccum AB 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 Ziccum AB will offset losses from the drop in Ziccum AB's long position.| Nanoform Finland vs. Fractal Gaming Group | Nanoform Finland vs. USWE Sports AB | Nanoform Finland vs. Nexam Chemical Holding | Nanoform Finland vs. G5 Entertainment publ |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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