Correlation Between Nilfisk Holding and Nykredit Invest
Can any of the company-specific risk be diversified away by investing in both Nilfisk Holding and Nykredit Invest 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 Nykredit Invest 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 Nykredit Invest Korte, you can compare the effects of market volatilities on Nilfisk Holding and Nykredit Invest 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 Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nilfisk Holding and Nykredit Invest.
Diversification Opportunities for Nilfisk Holding and Nykredit Invest
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nilfisk and Nykredit is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nilfisk Holding AS and Nykredit Invest Korte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nykredit Invest Korte 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 Nykredit Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nykredit Invest Korte has no effect on the direction of Nilfisk Holding i.e., Nilfisk Holding and Nykredit Invest go up and down completely randomly.
Pair Corralation between Nilfisk Holding and Nykredit Invest
Assuming the 90 days trading horizon Nilfisk Holding AS is expected to under-perform the Nykredit Invest. In addition to that, Nilfisk Holding is 21.75 times more volatile than Nykredit Invest Korte. It trades about -0.19 of its total potential returns per unit of risk. Nykredit Invest Korte is currently generating about -0.03 per unit of volatility. If you would invest 9,943 in Nykredit Invest Korte on October 9, 2024 and sell it today you would lose (3.00) from holding Nykredit Invest Korte or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nilfisk Holding AS vs. Nykredit Invest Korte
Performance |
| Timeline |
| Nilfisk Holding AS |
| Nykredit Invest Korte |
Nilfisk Holding and Nykredit Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nilfisk Holding and Nykredit Invest
The main advantage of trading using opposite Nilfisk Holding and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nilfisk Holding position performs unexpectedly, Nykredit Invest 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.| Nilfisk Holding vs. NKT AS | Nilfisk Holding vs. ISS AS | Nilfisk Holding vs. Demant AS | Nilfisk Holding vs. Matas AS |
| Nykredit Invest vs. Ringkjoebing Landbobank AS | Nykredit Invest vs. Moens Bank AS | Nykredit Invest vs. Vestjysk Bank AS | Nykredit Invest vs. Embla Medical hf |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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