Correlation Between NIP Group and Brera Holdings
Can any of the company-specific risk be diversified away by investing in both NIP Group and Brera Holdings 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 NIP Group and Brera Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIP Group American and Brera Holdings PLC, you can compare the effects of market volatilities on NIP Group and Brera Holdings 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 NIP Group with a short position of Brera Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIP Group and Brera Holdings.
Diversification Opportunities for NIP Group and Brera Holdings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NIP and Brera is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding NIP Group American and Brera Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brera Holdings PLC and NIP Group 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 NIP Group American are associated (or correlated) with Brera Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brera Holdings PLC has no effect on the direction of NIP Group i.e., NIP Group and Brera Holdings go up and down completely randomly.
Pair Corralation between NIP Group and Brera Holdings
Given the investment horizon of 90 days NIP Group American is expected to under-perform the Brera Holdings. But the stock apears to be less risky and, when comparing its historical volatility, NIP Group American is 1.33 times less risky than Brera Holdings. The stock trades about -0.26 of its potential returns per unit of risk. The Brera Holdings PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 74.00 in Brera Holdings PLC on November 29, 2024 and sell it today you would lose (6.00) from holding Brera Holdings PLC or give up 8.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIP Group American vs. Brera Holdings PLC
Performance |
| Timeline |
| NIP Group American |
| Brera Holdings PLC |
NIP Group and Brera Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIP Group and Brera Holdings
The main advantage of trading using opposite NIP Group and Brera Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIP Group position performs unexpectedly, Brera Holdings 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 Brera Holdings will offset losses from the drop in Brera Holdings' long position.| NIP Group vs. Analog Devices | NIP Group vs. Paysafe | NIP Group vs. National CineMedia | NIP Group vs. FARO Technologies |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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