Correlation Between Nanologica and TalkPool
Can any of the company-specific risk be diversified away by investing in both Nanologica and TalkPool 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 Nanologica and TalkPool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nanologica AB and TalkPool AG, you can compare the effects of market volatilities on Nanologica and TalkPool 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 Nanologica with a short position of TalkPool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanologica and TalkPool.
Diversification Opportunities for Nanologica and TalkPool
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanologica and TalkPool is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nanologica AB and TalkPool AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TalkPool AG and Nanologica 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 Nanologica AB are associated (or correlated) with TalkPool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TalkPool AG has no effect on the direction of Nanologica i.e., Nanologica and TalkPool go up and down completely randomly.
Pair Corralation between Nanologica and TalkPool
Assuming the 90 days trading horizon Nanologica AB is expected to under-perform the TalkPool. In addition to that, Nanologica is 1.36 times more volatile than TalkPool AG. It trades about -0.16 of its total potential returns per unit of risk. TalkPool AG is currently generating about -0.04 per unit of volatility. If you would invest 892.00 in TalkPool AG on August 28, 2024 and sell it today you would lose (222.00) from holding TalkPool AG or give up 24.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanologica AB vs. TalkPool AG
Performance |
| Timeline |
| Nanologica AB |
| TalkPool AG |
Nanologica and TalkPool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanologica and TalkPool
The main advantage of trading using opposite Nanologica and TalkPool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanologica position performs unexpectedly, TalkPool 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 TalkPool will offset losses from the drop in TalkPool's long position.| Nanologica vs. Bavarian Nordic | Nanologica vs. BioPorto | Nanologica vs. Zaptec AS | Nanologica vs. cBrain AS |
| TalkPool vs. Lidds AB | TalkPool vs. Serstech AB | TalkPool vs. Transtema Group AB | TalkPool vs. Enorama Pharma 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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