Correlation Between NAXS Nordic and Mendus AB
Can any of the company-specific risk be diversified away by investing in both NAXS Nordic and Mendus 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 Mendus 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 Mendus AB, you can compare the effects of market volatilities on NAXS Nordic and Mendus 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 Mendus AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAXS Nordic and Mendus AB.
Diversification Opportunities for NAXS Nordic and Mendus AB
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NAXS and Mendus is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding NAXS Nordic Access and Mendus AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mendus 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 Mendus AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mendus AB has no effect on the direction of NAXS Nordic i.e., NAXS Nordic and Mendus AB go up and down completely randomly.
Pair Corralation between NAXS Nordic and Mendus AB
Assuming the 90 days trading horizon NAXS Nordic Access is expected to generate 0.34 times more return on investment than Mendus AB. However, NAXS Nordic Access is 2.96 times less risky than Mendus AB. It trades about -0.24 of its potential returns per unit of risk. Mendus AB is currently generating about -0.31 per unit of risk. If you would invest 5,440 in NAXS Nordic Access on September 1, 2024 and sell it today you would lose (260.00) from holding NAXS Nordic Access or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NAXS Nordic Access vs. Mendus AB
Performance |
| Timeline |
| NAXS Nordic Access |
| Mendus AB |
NAXS Nordic and Mendus AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAXS Nordic and Mendus AB
The main advantage of trading using opposite NAXS Nordic and Mendus AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAXS Nordic position performs unexpectedly, Mendus 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 Mendus AB will offset losses from the drop in Mendus AB's long position.| NAXS Nordic vs. AB Traction | NAXS Nordic vs. Havsfrun Investment AB | NAXS Nordic vs. Novotek AB | NAXS Nordic vs. Investment AB Oresund |
| Mendus AB vs. Cantargia AB | Mendus AB vs. BioInvent International AB | Mendus AB vs. Alligator Bioscience AB | Mendus AB vs. Moberg Pharma 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |