Correlation Between Niloerngruppen and EWork Group
Can any of the company-specific risk be diversified away by investing in both Niloerngruppen and EWork Group 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 EWork Group 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 eWork Group AB, you can compare the effects of market volatilities on Niloerngruppen and EWork 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 Niloerngruppen with a short position of EWork Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niloerngruppen and EWork Group.
Diversification Opportunities for Niloerngruppen and EWork Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Niloerngruppen and EWork is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Niloerngruppen AB Series and eWork Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eWork Group 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 EWork Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eWork Group AB has no effect on the direction of Niloerngruppen i.e., Niloerngruppen and EWork Group go up and down completely randomly.
Pair Corralation between Niloerngruppen and EWork Group
Assuming the 90 days trading horizon Niloerngruppen AB Series is expected to under-perform the EWork Group. In addition to that, Niloerngruppen is 1.06 times more volatile than eWork Group AB. It trades about -0.05 of its total potential returns per unit of risk. eWork Group AB is currently generating about -0.02 per unit of volatility. If you would invest 14,500 in eWork Group AB on August 29, 2024 and sell it today you would lose (580.00) from holding eWork Group AB or give up 4.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niloerngruppen AB Series vs. eWork Group AB
Performance |
| Timeline |
| Niloerngruppen AB Series |
| eWork Group AB |
Niloerngruppen and EWork Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niloerngruppen and EWork Group
The main advantage of trading using opposite Niloerngruppen and EWork Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niloerngruppen position performs unexpectedly, EWork 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 EWork Group will offset losses from the drop in EWork Group's long position.| Niloerngruppen vs. Telefonaktiebolaget LM Ericsson | Niloerngruppen vs. Swedbank AB | Niloerngruppen vs. AB Electrolux | Niloerngruppen vs. Investor AB ser |
| EWork Group vs. Enzymatica publ AB | EWork Group vs. Polygiene AB | EWork Group vs. Sprint Bioscience AB | EWork Group vs. XMReality 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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