Correlation Between Nicoccino Holding and Online Brands
Can any of the company-specific risk be diversified away by investing in both Nicoccino Holding and Online Brands 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 Nicoccino Holding and Online Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicoccino Holding AB and Online Brands Nordic, you can compare the effects of market volatilities on Nicoccino Holding and Online Brands 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 Nicoccino Holding with a short position of Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicoccino Holding and Online Brands.
Diversification Opportunities for Nicoccino Holding and Online Brands
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nicoccino and Online is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nicoccino Holding AB and Online Brands Nordic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Online Brands Nordic and Nicoccino Holding 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 Nicoccino Holding AB are associated (or correlated) with Online Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Online Brands Nordic has no effect on the direction of Nicoccino Holding i.e., Nicoccino Holding and Online Brands go up and down completely randomly.
Pair Corralation between Nicoccino Holding and Online Brands
Assuming the 90 days trading horizon Nicoccino Holding AB is expected to under-perform the Online Brands. In addition to that, Nicoccino Holding is 1.76 times more volatile than Online Brands Nordic. It trades about -0.09 of its total potential returns per unit of risk. Online Brands Nordic is currently generating about -0.04 per unit of volatility. If you would invest 1,300 in Online Brands Nordic on August 28, 2024 and sell it today you would lose (235.00) from holding Online Brands Nordic or give up 18.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicoccino Holding AB vs. Online Brands Nordic
Performance |
| Timeline |
| Nicoccino Holding |
| Online Brands Nordic |
Nicoccino Holding and Online Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicoccino Holding and Online Brands
The main advantage of trading using opposite Nicoccino Holding and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicoccino Holding position performs unexpectedly, Online Brands 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 Online Brands will offset losses from the drop in Online Brands' long position.| Nicoccino Holding vs. Clean Motion AB | Nicoccino Holding vs. NetJobs Group AB | Nicoccino Holding vs. Klaria Pharma Holding | Nicoccino Holding vs. Nexam Chemical Holding |
| Online Brands vs. New Wave Group | Online Brands vs. Clas Ohlson AB | Online Brands vs. BE Group AB | Online Brands vs. Betsson 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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