Correlation Between NCAB and Exsitec Holding
Can any of the company-specific risk be diversified away by investing in both NCAB and Exsitec Holding 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 NCAB and Exsitec Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NCAB Group and Exsitec Holding AB, you can compare the effects of market volatilities on NCAB and Exsitec Holding 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 NCAB with a short position of Exsitec Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCAB and Exsitec Holding.
Diversification Opportunities for NCAB and Exsitec Holding
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NCAB and Exsitec is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding NCAB Group and Exsitec Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exsitec Holding AB and NCAB 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 NCAB Group are associated (or correlated) with Exsitec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exsitec Holding AB has no effect on the direction of NCAB i.e., NCAB and Exsitec Holding go up and down completely randomly.
Pair Corralation between NCAB and Exsitec Holding
Assuming the 90 days trading horizon NCAB Group is expected to generate 1.17 times more return on investment than Exsitec Holding. However, NCAB is 1.17 times more volatile than Exsitec Holding AB. It trades about 0.2 of its potential returns per unit of risk. Exsitec Holding AB is currently generating about -0.05 per unit of risk. If you would invest 5,845 in NCAB Group on September 24, 2024 and sell it today you would earn a total of 545.00 from holding NCAB Group or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NCAB Group vs. Exsitec Holding AB
Performance |
| Timeline |
| NCAB Group |
| Exsitec Holding AB |
NCAB and Exsitec Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCAB and Exsitec Holding
The main advantage of trading using opposite NCAB and Exsitec Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCAB position performs unexpectedly, Exsitec Holding 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 Exsitec Holding will offset losses from the drop in Exsitec Holding's long position.| NCAB vs. MIPS AB | NCAB vs. Hexatronic Group AB | NCAB vs. Lagercrantz Group AB | NCAB vs. Vitec Software Group |
| Exsitec Holding vs. FormPipe Software AB | Exsitec Holding vs. Micro Systemation AB | Exsitec Holding vs. CTT Systems AB | Exsitec Holding vs. CAG Group 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |