Correlation Between Nolato AB and Fenix Outdoor
Can any of the company-specific risk be diversified away by investing in both Nolato AB and Fenix Outdoor 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 Nolato AB and Fenix Outdoor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nolato AB and Fenix Outdoor International, you can compare the effects of market volatilities on Nolato AB and Fenix Outdoor 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 Nolato AB with a short position of Fenix Outdoor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nolato AB and Fenix Outdoor.
Diversification Opportunities for Nolato AB and Fenix Outdoor
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nolato and Fenix is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nolato AB and Fenix Outdoor International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fenix Outdoor Intern and Nolato AB 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 Nolato AB are associated (or correlated) with Fenix Outdoor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fenix Outdoor Intern has no effect on the direction of Nolato AB i.e., Nolato AB and Fenix Outdoor go up and down completely randomly.
Pair Corralation between Nolato AB and Fenix Outdoor
Assuming the 90 days trading horizon Nolato AB is expected to under-perform the Fenix Outdoor. In addition to that, Nolato AB is 1.03 times more volatile than Fenix Outdoor International. It trades about -0.04 of its total potential returns per unit of risk. Fenix Outdoor International is currently generating about -0.04 per unit of volatility. If you would invest 70,900 in Fenix Outdoor International on September 1, 2024 and sell it today you would lose (6,700) from holding Fenix Outdoor International or give up 9.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Nolato AB vs. Fenix Outdoor International
Performance |
| Timeline |
| Nolato AB |
| Fenix Outdoor Intern |
Nolato AB and Fenix Outdoor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nolato AB and Fenix Outdoor
The main advantage of trading using opposite Nolato AB and Fenix Outdoor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nolato AB position performs unexpectedly, Fenix Outdoor 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 Fenix Outdoor will offset losses from the drop in Fenix Outdoor's long position.| Nolato AB vs. HEXPOL AB | Nolato AB vs. Trelleborg AB | Nolato AB vs. Indutrade AB | Nolato AB vs. Vitrolife AB |
| Fenix Outdoor vs. Thule Group AB | Fenix Outdoor vs. Nolato AB | Fenix Outdoor vs. Holmen AB | Fenix Outdoor vs. Troax Group AB |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |