Correlation Between Nilfisk Holding and Ennogie Solar
Can any of the company-specific risk be diversified away by investing in both Nilfisk Holding and Ennogie Solar 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 Nilfisk Holding and Ennogie Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nilfisk Holding AS and Ennogie Solar Group, you can compare the effects of market volatilities on Nilfisk Holding and Ennogie Solar 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 Nilfisk Holding with a short position of Ennogie Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nilfisk Holding and Ennogie Solar.
Diversification Opportunities for Nilfisk Holding and Ennogie Solar
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nilfisk and Ennogie is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nilfisk Holding AS and Ennogie Solar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ennogie Solar Group and Nilfisk Holding 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 Nilfisk Holding AS are associated (or correlated) with Ennogie Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ennogie Solar Group has no effect on the direction of Nilfisk Holding i.e., Nilfisk Holding and Ennogie Solar go up and down completely randomly.
Pair Corralation between Nilfisk Holding and Ennogie Solar
Assuming the 90 days trading horizon Nilfisk Holding AS is expected to generate 0.53 times more return on investment than Ennogie Solar. However, Nilfisk Holding AS is 1.9 times less risky than Ennogie Solar. It trades about -0.03 of its potential returns per unit of risk. Ennogie Solar Group is currently generating about -0.07 per unit of risk. If you would invest 14,840 in Nilfisk Holding AS on August 26, 2024 and sell it today you would lose (4,140) from holding Nilfisk Holding AS or give up 27.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nilfisk Holding AS vs. Ennogie Solar Group
Performance |
| Timeline |
| Nilfisk Holding AS |
| Ennogie Solar Group |
Nilfisk Holding and Ennogie Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nilfisk Holding and Ennogie Solar
The main advantage of trading using opposite Nilfisk Holding and Ennogie Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nilfisk Holding position performs unexpectedly, Ennogie Solar 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 Ennogie Solar will offset losses from the drop in Ennogie Solar's long position.| Nilfisk Holding vs. North Media AS | Nilfisk Holding vs. HH International AS | Nilfisk Holding vs. Per Aarsleff Holding | Nilfisk Holding vs. First Farms AS |
| Ennogie Solar vs. Green Hydrogen Systems | Ennogie Solar vs. ALK Abell AS | Ennogie Solar vs. H Lundbeck AS | Ennogie Solar vs. TORM plc |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |