Correlation Between NAXS Nordic and Creades AB
Can any of the company-specific risk be diversified away by investing in both NAXS Nordic and Creades 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 NAXS Nordic and Creades AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAXS Nordic Access and Creades AB, you can compare the effects of market volatilities on NAXS Nordic and Creades 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 NAXS Nordic with a short position of Creades AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAXS Nordic and Creades AB.
Diversification Opportunities for NAXS Nordic and Creades AB
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NAXS and Creades is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NAXS Nordic Access and Creades AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creades AB and NAXS Nordic 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 NAXS Nordic Access are associated (or correlated) with Creades AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creades AB has no effect on the direction of NAXS Nordic i.e., NAXS Nordic and Creades AB go up and down completely randomly.
Pair Corralation between NAXS Nordic and Creades AB
Assuming the 90 days trading horizon NAXS Nordic Access is expected to generate 0.69 times more return on investment than Creades AB. However, NAXS Nordic Access is 1.45 times less risky than Creades AB. It trades about 0.0 of its potential returns per unit of risk. Creades AB is currently generating about 0.0 per unit of risk. If you would invest 5,358 in NAXS Nordic Access on September 4, 2024 and sell it today you would lose (178.00) from holding NAXS Nordic Access or give up 3.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
NAXS Nordic Access vs. Creades AB
Performance |
| Timeline |
| NAXS Nordic Access |
| Creades AB |
NAXS Nordic and Creades AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAXS Nordic and Creades AB
The main advantage of trading using opposite NAXS Nordic and Creades AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAXS Nordic position performs unexpectedly, Creades 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 Creades AB will offset losses from the drop in Creades AB's long position.| NAXS Nordic vs. Bure Equity AB | NAXS Nordic vs. Creades AB | NAXS Nordic vs. L E Lundbergfretagen | NAXS Nordic vs. Industrivarden AB ser |
| Creades AB vs. L E Lundbergfretagen | Creades AB vs. Industrivarden AB ser | Creades AB vs. Svenska Handelsbanken AB | Creades AB vs. Investor AB ser |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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