Correlation Between Nekkar Asa and Vow ASA
Can any of the company-specific risk be diversified away by investing in both Nekkar Asa and Vow ASA 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 Vow ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nekkar Asa and Vow ASA, you can compare the effects of market volatilities on Nekkar Asa and Vow ASA 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 Vow ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nekkar Asa and Vow ASA.
Diversification Opportunities for Nekkar Asa and Vow ASA
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nekkar and Vow is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nekkar Asa and Vow ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vow ASA 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 Vow ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vow ASA has no effect on the direction of Nekkar Asa i.e., Nekkar Asa and Vow ASA go up and down completely randomly.
Pair Corralation between Nekkar Asa and Vow ASA
Assuming the 90 days trading horizon Nekkar Asa is expected to generate 0.38 times more return on investment than Vow ASA. However, Nekkar Asa is 2.6 times less risky than Vow ASA. It trades about 0.04 of its potential returns per unit of risk. Vow ASA is currently generating about -0.11 per unit of risk. If you would invest 834.00 in Nekkar Asa on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Nekkar Asa or generate 17.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nekkar Asa vs. Vow ASA
Performance |
| Timeline |
| Nekkar Asa |
| Vow ASA |
Nekkar Asa and Vow ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nekkar Asa and Vow ASA
The main advantage of trading using opposite Nekkar Asa and Vow ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nekkar Asa position performs unexpectedly, Vow ASA 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 Vow ASA will offset losses from the drop in Vow ASA's long position.| Nekkar Asa vs. Carasent ASA | Nekkar Asa vs. 2020 Bulkers | Nekkar Asa vs. Kitron ASA | Nekkar Asa vs. MPC Container Ships |
| Vow ASA vs. Hexagon Composites ASA | Vow ASA vs. Vow Green Metals | Vow ASA vs. REC Silicon ASA | Vow ASA vs. Aker Carbon Capture |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |