Correlation Between Neola Medical and Fastighetsbolaget
Can any of the company-specific risk be diversified away by investing in both Neola Medical and Fastighetsbolaget 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 Neola Medical and Fastighetsbolaget into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neola Medical AB and Fastighetsbolaget Emilshus AB, you can compare the effects of market volatilities on Neola Medical and Fastighetsbolaget 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 Neola Medical with a short position of Fastighetsbolaget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neola Medical and Fastighetsbolaget.
Diversification Opportunities for Neola Medical and Fastighetsbolaget
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Neola and Fastighetsbolaget is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Neola Medical AB and Fastighetsbolaget Emilshus AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastighetsbolaget and Neola Medical 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 Neola Medical AB are associated (or correlated) with Fastighetsbolaget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastighetsbolaget has no effect on the direction of Neola Medical i.e., Neola Medical and Fastighetsbolaget go up and down completely randomly.
Pair Corralation between Neola Medical and Fastighetsbolaget
Assuming the 90 days trading horizon Neola Medical is expected to generate 2.34 times less return on investment than Fastighetsbolaget. In addition to that, Neola Medical is 2.33 times more volatile than Fastighetsbolaget Emilshus AB. It trades about 0.03 of its total potential returns per unit of risk. Fastighetsbolaget Emilshus AB is currently generating about 0.15 per unit of volatility. If you would invest 4,430 in Fastighetsbolaget Emilshus AB on September 5, 2024 and sell it today you would earn a total of 380.00 from holding Fastighetsbolaget Emilshus AB or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neola Medical AB vs. Fastighetsbolaget Emilshus AB
Performance |
| Timeline |
| Neola Medical AB |
| Fastighetsbolaget |
Neola Medical and Fastighetsbolaget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neola Medical and Fastighetsbolaget
The main advantage of trading using opposite Neola Medical and Fastighetsbolaget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neola Medical position performs unexpectedly, Fastighetsbolaget 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 Fastighetsbolaget will offset losses from the drop in Fastighetsbolaget's long position.| Neola Medical vs. iZafe Group AB | Neola Medical vs. Triboron International AB | Neola Medical vs. KABE Group AB | Neola Medical vs. IAR Systems Group |
| Fastighetsbolaget vs. Online Brands Nordic | Fastighetsbolaget vs. Viva Wine Group | Fastighetsbolaget vs. Neola Medical AB | Fastighetsbolaget vs. Invisio Communications 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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