Correlation Between Nekkar Asa and Arcticzymes Technologies
Can any of the company-specific risk be diversified away by investing in both Nekkar Asa and Arcticzymes Technologies 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 Nekkar Asa and Arcticzymes Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nekkar Asa and Arcticzymes Technologies ASA, you can compare the effects of market volatilities on Nekkar Asa and Arcticzymes Technologies 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 Nekkar Asa with a short position of Arcticzymes Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nekkar Asa and Arcticzymes Technologies.
Diversification Opportunities for Nekkar Asa and Arcticzymes Technologies
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nekkar and Arcticzymes is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nekkar Asa and Arcticzymes Technologies ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcticzymes Technologies and Nekkar Asa 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 Nekkar Asa are associated (or correlated) with Arcticzymes Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcticzymes Technologies has no effect on the direction of Nekkar Asa i.e., Nekkar Asa and Arcticzymes Technologies go up and down completely randomly.
Pair Corralation between Nekkar Asa and Arcticzymes Technologies
Assuming the 90 days trading horizon Nekkar Asa is expected to generate 0.73 times more return on investment than Arcticzymes Technologies. However, Nekkar Asa is 1.37 times less risky than Arcticzymes Technologies. It trades about 0.05 of its potential returns per unit of risk. Arcticzymes Technologies ASA is currently generating about -0.08 per unit of risk. If you would invest 613.00 in Nekkar Asa on August 28, 2024 and sell it today you would earn a total of 351.00 from holding Nekkar Asa or generate 57.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nekkar Asa vs. Arcticzymes Technologies ASA
Performance |
| Timeline |
| Nekkar Asa |
| Arcticzymes Technologies |
Nekkar Asa and Arcticzymes Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nekkar Asa and Arcticzymes Technologies
The main advantage of trading using opposite Nekkar Asa and Arcticzymes Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nekkar Asa position performs unexpectedly, Arcticzymes Technologies 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 Arcticzymes Technologies will offset losses from the drop in Arcticzymes Technologies' long position.| Nekkar Asa vs. Carasent ASA | Nekkar Asa vs. 2020 Bulkers | Nekkar Asa vs. Kitron ASA | Nekkar Asa vs. MPC Container Ships |
| Arcticzymes Technologies vs. Carasent ASA | Arcticzymes Technologies vs. Bergenbio ASA | Arcticzymes Technologies vs. Photocure | Arcticzymes Technologies vs. Kitron ASA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |