Correlation Between NetJobs Group and Clean Motion
Can any of the company-specific risk be diversified away by investing in both NetJobs Group and Clean Motion 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 NetJobs Group and Clean Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NetJobs Group AB and Clean Motion AB, you can compare the effects of market volatilities on NetJobs Group and Clean Motion 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 NetJobs Group with a short position of Clean Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetJobs Group and Clean Motion.
Diversification Opportunities for NetJobs Group and Clean Motion
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NetJobs and Clean is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding NetJobs Group AB and Clean Motion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Motion AB and NetJobs 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 NetJobs Group AB are associated (or correlated) with Clean Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Motion AB has no effect on the direction of NetJobs Group i.e., NetJobs Group and Clean Motion go up and down completely randomly.
Pair Corralation between NetJobs Group and Clean Motion
Assuming the 90 days trading horizon NetJobs Group AB is expected to under-perform the Clean Motion. But the stock apears to be less risky and, when comparing its historical volatility, NetJobs Group AB is 1.24 times less risky than Clean Motion. The stock trades about -0.02 of its potential returns per unit of risk. The Clean Motion AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 115.00 in Clean Motion AB on August 28, 2024 and sell it today you would lose (81.00) from holding Clean Motion AB or give up 70.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
NetJobs Group AB vs. Clean Motion AB
Performance |
| Timeline |
| NetJobs Group AB |
| Clean Motion AB |
NetJobs Group and Clean Motion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetJobs Group and Clean Motion
The main advantage of trading using opposite NetJobs Group and Clean Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetJobs Group position performs unexpectedly, Clean Motion 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 Clean Motion will offset losses from the drop in Clean Motion's long position.| NetJobs Group vs. Online Brands Nordic | NetJobs Group vs. Clean Motion AB | NetJobs Group vs. Mavshack publ AB | NetJobs Group vs. Nicoccino Holding AB |
| Clean Motion vs. Doxa AB | Clean Motion vs. Cortus Energy AB | Clean Motion vs. Online Brands Nordic | Clean Motion vs. NetJobs Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |