Correlation Between Nexam Chemical and Footway Group
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By analyzing existing cross correlation between Nexam Chemical Holding and Footway Group AB, you can compare the effects of market volatilities on Nexam Chemical and Footway Group 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 Nexam Chemical with a short position of Footway Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexam Chemical and Footway Group.
Diversification Opportunities for Nexam Chemical and Footway Group
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nexam and Footway is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nexam Chemical Holding and Footway Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Footway Group AB and Nexam Chemical 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 Nexam Chemical Holding are associated (or correlated) with Footway Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Footway Group AB has no effect on the direction of Nexam Chemical i.e., Nexam Chemical and Footway Group go up and down completely randomly.
Pair Corralation between Nexam Chemical and Footway Group
Assuming the 90 days trading horizon Nexam Chemical Holding is expected to generate 0.86 times more return on investment than Footway Group. However, Nexam Chemical Holding is 1.16 times less risky than Footway Group. It trades about 0.01 of its potential returns per unit of risk. Footway Group AB is currently generating about -0.03 per unit of risk. If you would invest 506.00 in Nexam Chemical Holding on September 3, 2024 and sell it today you would lose (107.00) from holding Nexam Chemical Holding or give up 21.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexam Chemical Holding vs. Footway Group AB
Performance |
| Timeline |
| Nexam Chemical Holding |
| Footway Group AB |
Nexam Chemical and Footway Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexam Chemical and Footway Group
The main advantage of trading using opposite Nexam Chemical and Footway Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexam Chemical position performs unexpectedly, Footway Group 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 Footway Group will offset losses from the drop in Footway Group's long position.| Nexam Chemical vs. Auriant Mining AB | Nexam Chemical vs. aXichem AB | Nexam Chemical vs. Clean Motion AB | Nexam Chemical vs. KABE Group AB |
| Footway Group vs. Invisio Communications AB | Footway Group vs. Kinnevik Investment AB | Footway Group vs. Arctic Blue Beverages | Footway Group vs. Lohilo Foods 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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