Correlation Between Niloerngruppen and Cantargia
Can any of the company-specific risk be diversified away by investing in both Niloerngruppen and Cantargia 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 Niloerngruppen and Cantargia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niloerngruppen AB Series and Cantargia AB, you can compare the effects of market volatilities on Niloerngruppen and Cantargia 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 Niloerngruppen with a short position of Cantargia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niloerngruppen and Cantargia.
Diversification Opportunities for Niloerngruppen and Cantargia
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Niloerngruppen and Cantargia is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Niloerngruppen AB Series and Cantargia AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantargia AB and Niloerngruppen 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 Niloerngruppen AB Series are associated (or correlated) with Cantargia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantargia AB has no effect on the direction of Niloerngruppen i.e., Niloerngruppen and Cantargia go up and down completely randomly.
Pair Corralation between Niloerngruppen and Cantargia
Assuming the 90 days trading horizon Niloerngruppen AB Series is expected to generate 0.36 times more return on investment than Cantargia. However, Niloerngruppen AB Series is 2.81 times less risky than Cantargia. It trades about 0.01 of its potential returns per unit of risk. Cantargia AB is currently generating about -0.02 per unit of risk. If you would invest 6,792 in Niloerngruppen AB Series on September 1, 2024 and sell it today you would lose (12.00) from holding Niloerngruppen AB Series or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Niloerngruppen AB Series vs. Cantargia AB
Performance |
| Timeline |
| Niloerngruppen AB Series |
| Cantargia AB |
Niloerngruppen and Cantargia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niloerngruppen and Cantargia
The main advantage of trading using opposite Niloerngruppen and Cantargia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niloerngruppen position performs unexpectedly, Cantargia 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 Cantargia will offset losses from the drop in Cantargia's long position.| Niloerngruppen vs. eWork Group AB | Niloerngruppen vs. Softronic AB | Niloerngruppen vs. Bjorn Borg AB | Niloerngruppen vs. Novotek AB |
| Cantargia vs. Hansa Biopharma AB | Cantargia vs. Oncopeptides AB | Cantargia vs. BioArctic AB | Cantargia vs. Alligator Bioscience 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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