Correlation Between Novina SA and Examobile
Can any of the company-specific risk be diversified away by investing in both Novina SA and Examobile 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 Novina SA and Examobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Novina SA and Examobile SA, you can compare the effects of market volatilities on Novina SA and Examobile 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 Novina SA with a short position of Examobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Novina SA and Examobile.
Diversification Opportunities for Novina SA and Examobile
Excellent diversification
The 3 months correlation between Novina and Examobile is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Novina SA and Examobile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Examobile SA and Novina SA 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 Novina SA are associated (or correlated) with Examobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Examobile SA has no effect on the direction of Novina SA i.e., Novina SA and Examobile go up and down completely randomly.
Pair Corralation between Novina SA and Examobile
Assuming the 90 days trading horizon Novina SA is expected to generate 2.3 times more return on investment than Examobile. However, Novina SA is 2.3 times more volatile than Examobile SA. It trades about 0.05 of its potential returns per unit of risk. Examobile SA is currently generating about -0.05 per unit of risk. If you would invest 62.00 in Novina SA on November 5, 2024 and sell it today you would earn a total of 66.00 from holding Novina SA or generate 106.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 70.6% |
| Values | Daily Returns |
Novina SA vs. Examobile SA
Performance |
| Timeline |
| Novina SA |
| Examobile SA |
Novina SA and Examobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Novina SA and Examobile
The main advantage of trading using opposite Novina SA and Examobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Novina SA position performs unexpectedly, Examobile 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 Examobile will offset losses from the drop in Examobile's long position.| Novina SA vs. PZ Cormay SA | Novina SA vs. Pyramid Games SA | Novina SA vs. Vivid Games SA | Novina SA vs. Saule Technologies SA |
| Examobile vs. Movie Games SA | Examobile vs. M Food SA | Examobile vs. Varsav Game Studios | Examobile vs. Alior Bank SA |
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 Stocks Directory module to find actively traded stocks across global markets.
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