Correlation Between Nolato AB and XANO Industri
Can any of the company-specific risk be diversified away by investing in both Nolato AB and XANO Industri 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 XANO Industri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nolato AB and XANO Industri AB, you can compare the effects of market volatilities on Nolato AB and XANO Industri 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 XANO Industri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nolato AB and XANO Industri.
Diversification Opportunities for Nolato AB and XANO Industri
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nolato and XANO is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nolato AB and XANO Industri AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XANO Industri AB 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 XANO Industri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XANO Industri AB has no effect on the direction of Nolato AB i.e., Nolato AB and XANO Industri go up and down completely randomly.
Pair Corralation between Nolato AB and XANO Industri
Assuming the 90 days trading horizon Nolato AB is expected to generate 0.53 times more return on investment than XANO Industri. However, Nolato AB is 1.88 times less risky than XANO Industri. It trades about -0.1 of its potential returns per unit of risk. XANO Industri AB is currently generating about -0.25 per unit of risk. If you would invest 5,655 in Nolato AB on September 5, 2024 and sell it today you would lose (210.00) from holding Nolato AB or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nolato AB vs. XANO Industri AB
Performance |
| Timeline |
| Nolato AB |
| XANO Industri AB |
Nolato AB and XANO Industri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nolato AB and XANO Industri
The main advantage of trading using opposite Nolato AB and XANO Industri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nolato AB position performs unexpectedly, XANO Industri 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 XANO Industri will offset losses from the drop in XANO Industri's long position.| Nolato AB vs. HEXPOL AB | Nolato AB vs. Trelleborg AB | Nolato AB vs. Indutrade AB | Nolato AB vs. Vitrolife AB |
| XANO Industri vs. Indutrade AB | XANO Industri vs. Addtech AB | XANO Industri vs. Nolato AB | XANO Industri vs. Bufab Holding 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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