Correlation Between Nnit AS and Columbus
Can any of the company-specific risk be diversified away by investing in both Nnit AS and Columbus 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 Nnit AS and Columbus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nnit AS and Columbus AS, you can compare the effects of market volatilities on Nnit AS and Columbus 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 Nnit AS with a short position of Columbus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nnit AS and Columbus.
Diversification Opportunities for Nnit AS and Columbus
Modest diversification
The 3 months correlation between Nnit and Columbus is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nnit AS and Columbus AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbus AS and Nnit AS 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 Nnit AS are associated (or correlated) with Columbus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbus AS has no effect on the direction of Nnit AS i.e., Nnit AS and Columbus go up and down completely randomly.
Pair Corralation between Nnit AS and Columbus
Assuming the 90 days trading horizon Nnit AS is expected to under-perform the Columbus. But the stock apears to be less risky and, when comparing its historical volatility, Nnit AS is 2.44 times less risky than Columbus. The stock trades about -0.17 of its potential returns per unit of risk. The Columbus AS is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,040 in Columbus AS on November 5, 2024 and sell it today you would earn a total of 260.00 from holding Columbus AS or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nnit AS vs. Columbus AS
Performance |
| Timeline |
| Nnit AS |
| Columbus AS |
Nnit AS and Columbus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nnit AS and Columbus
The main advantage of trading using opposite Nnit AS and Columbus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nnit AS position performs unexpectedly, Columbus 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 Columbus will offset losses from the drop in Columbus' long position.| Nnit AS vs. NTG Nordic Transport | Nnit AS vs. Dataproces Group AS | Nnit AS vs. FOM Technologies AS | Nnit AS vs. PARKEN Sport Entertainment |
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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