Correlation Between Netcompany Group and LED IBond
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By analyzing existing cross correlation between Netcompany Group AS and LED iBond International, you can compare the effects of market volatilities on Netcompany Group and LED IBond 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 Netcompany Group with a short position of LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netcompany Group and LED IBond.
Diversification Opportunities for Netcompany Group and LED IBond
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netcompany and LED is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Netcompany Group AS and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International and Netcompany Group 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 Netcompany Group AS are associated (or correlated) with LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of Netcompany Group i.e., Netcompany Group and LED IBond go up and down completely randomly.
Pair Corralation between Netcompany Group and LED IBond
Assuming the 90 days trading horizon Netcompany Group AS is expected to under-perform the LED IBond. But the stock apears to be less risky and, when comparing its historical volatility, Netcompany Group AS is 4.98 times less risky than LED IBond. The stock trades about -0.08 of its potential returns per unit of risk. The LED iBond International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 32.00 in LED iBond International on September 26, 2024 and sell it today you would earn a total of 1.00 from holding LED iBond International or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netcompany Group AS vs. LED iBond International
Performance |
| Timeline |
| Netcompany Group |
| LED iBond International |
Netcompany Group and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netcompany Group and LED IBond
The main advantage of trading using opposite Netcompany Group and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netcompany Group position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| Netcompany Group vs. Penneo AS | Netcompany Group vs. cBrain AS | Netcompany Group vs. FOM Technologies AS |
| LED IBond vs. Netcompany Group AS | LED IBond vs. Scandinavian Brake Systems | LED IBond vs. Jyske Invest Virksomhedsobligationer | LED IBond vs. Penneo AS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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