Correlation Between NetJobs Group and Online Brands
Can any of the company-specific risk be diversified away by investing in both NetJobs Group 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 NetJobs Group and Online Brands 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 Online Brands Nordic, you can compare the effects of market volatilities on NetJobs Group 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 NetJobs Group with a short position of Online Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetJobs Group and Online Brands.
Diversification Opportunities for NetJobs Group and Online Brands
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NetJobs and Online is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding NetJobs Group 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 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 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 NetJobs Group i.e., NetJobs Group and Online Brands go up and down completely randomly.
Pair Corralation between NetJobs Group and Online Brands
Assuming the 90 days trading horizon NetJobs Group AB is expected to generate 1.28 times more return on investment than Online Brands. However, NetJobs Group is 1.28 times more volatile than Online Brands Nordic. It trades about 0.04 of its potential returns per unit of risk. Online Brands Nordic is currently generating about 0.03 per unit of risk. If you would invest 37.00 in NetJobs Group AB on November 3, 2024 and sell it today you would earn a total of 7.00 from holding NetJobs Group AB or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NetJobs Group AB vs. Online Brands Nordic
Performance |
| Timeline |
| NetJobs Group AB |
| Online Brands Nordic |
NetJobs Group and Online Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetJobs Group and Online Brands
The main advantage of trading using opposite NetJobs Group and Online Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetJobs Group 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.| NetJobs Group vs. Online Brands Nordic | NetJobs Group vs. Clean Motion AB | NetJobs Group vs. Mavshack publ AB | NetJobs Group vs. Nicoccino Holding AB |
| Online Brands vs. NetJobs Group AB | Online Brands vs. Mantex AB | Online Brands vs. Doxa AB | Online Brands vs. Clean Motion 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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