Correlation Between Nokia Corp and Zebra Technologies
Can any of the company-specific risk be diversified away by investing in both Nokia Corp and Zebra 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 Nokia Corp and Zebra Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nokia Corp ADR and Zebra Technologies, you can compare the effects of market volatilities on Nokia Corp and Zebra 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 Nokia Corp with a short position of Zebra Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nokia Corp and Zebra Technologies.
Diversification Opportunities for Nokia Corp and Zebra Technologies
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nokia and Zebra is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nokia Corp ADR and Zebra Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zebra Technologies and Nokia Corp 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 Nokia Corp ADR are associated (or correlated) with Zebra Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zebra Technologies has no effect on the direction of Nokia Corp i.e., Nokia Corp and Zebra Technologies go up and down completely randomly.
Pair Corralation between Nokia Corp and Zebra Technologies
Considering the 90-day investment horizon Nokia Corp ADR is expected to generate 1.25 times more return on investment than Zebra Technologies. However, Nokia Corp is 1.25 times more volatile than Zebra Technologies. It trades about 0.13 of its potential returns per unit of risk. Zebra Technologies is currently generating about 0.09 per unit of risk. If you would invest 446.00 in Nokia Corp ADR on November 2, 2024 and sell it today you would earn a total of 24.00 from holding Nokia Corp ADR or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nokia Corp ADR vs. Zebra Technologies
Performance |
| Timeline |
| Nokia Corp ADR |
| Zebra Technologies |
Nokia Corp and Zebra Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nokia Corp and Zebra Technologies
The main advantage of trading using opposite Nokia Corp and Zebra Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nokia Corp position performs unexpectedly, Zebra 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 Zebra Technologies will offset losses from the drop in Zebra Technologies' long position.| Nokia Corp vs. Hewlett Packard Enterprise | Nokia Corp vs. Juniper Networks | Nokia Corp vs. Ciena Corp | Nokia Corp vs. Motorola Solutions |
| Zebra Technologies vs. Rigetti Computing | Zebra Technologies vs. IONQ WT | Zebra Technologies vs. Arqit Quantum Warrants | Zebra Technologies vs. QBTS WT |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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