Correlation Between Nexam Chemical and Maven Wireless
Can any of the company-specific risk be diversified away by investing in both Nexam Chemical and Maven Wireless 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 Nexam Chemical and Maven Wireless into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexam Chemical Holding and Maven Wireless Sweden, you can compare the effects of market volatilities on Nexam Chemical and Maven Wireless 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 Maven Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexam Chemical and Maven Wireless.
Diversification Opportunities for Nexam Chemical and Maven Wireless
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nexam and Maven is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nexam Chemical Holding and Maven Wireless Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maven Wireless Sweden 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 Maven Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maven Wireless Sweden has no effect on the direction of Nexam Chemical i.e., Nexam Chemical and Maven Wireless go up and down completely randomly.
Pair Corralation between Nexam Chemical and Maven Wireless
Assuming the 90 days trading horizon Nexam Chemical Holding is expected to generate 0.88 times more return on investment than Maven Wireless. However, Nexam Chemical Holding is 1.13 times less risky than Maven Wireless. It trades about -0.05 of its potential returns per unit of risk. Maven Wireless Sweden is currently generating about -0.27 per unit of risk. If you would invest 412.00 in Nexam Chemical Holding on September 2, 2024 and sell it today you would lose (13.00) from holding Nexam Chemical Holding or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexam Chemical Holding vs. Maven Wireless Sweden
Performance |
| Timeline |
| Nexam Chemical Holding |
| Maven Wireless Sweden |
Nexam Chemical and Maven Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexam Chemical and Maven Wireless
The main advantage of trading using opposite Nexam Chemical and Maven Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexam Chemical position performs unexpectedly, Maven Wireless 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 Maven Wireless will offset losses from the drop in Maven Wireless' long position.| Nexam Chemical vs. Polygiene AB | Nexam Chemical vs. Svenska Aerogel Holding | Nexam Chemical vs. Organoclick AB | Nexam Chemical vs. Kancera AB |
| Maven Wireless vs. Checkin Group AB | Maven Wireless vs. Midsummer AB | Maven Wireless vs. Hexatronic Group AB | Maven Wireless vs. Cint 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |