Correlation Between Online Brands and Nilsson Special
Can any of the company-specific risk be diversified away by investing in both Online Brands and Nilsson Special 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 Online Brands and Nilsson Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Online Brands Nordic and Nilsson Special Vehicles, you can compare the effects of market volatilities on Online Brands and Nilsson Special 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 Online Brands with a short position of Nilsson Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Online Brands and Nilsson Special.
Diversification Opportunities for Online Brands and Nilsson Special
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Online and Nilsson is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Online Brands Nordic and Nilsson Special Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nilsson Special Vehicles and Online Brands 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 Online Brands Nordic are associated (or correlated) with Nilsson Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nilsson Special Vehicles has no effect on the direction of Online Brands i.e., Online Brands and Nilsson Special go up and down completely randomly.
Pair Corralation between Online Brands and Nilsson Special
Assuming the 90 days trading horizon Online Brands Nordic is expected to generate 1.17 times more return on investment than Nilsson Special. However, Online Brands is 1.17 times more volatile than Nilsson Special Vehicles. It trades about 0.01 of its potential returns per unit of risk. Nilsson Special Vehicles is currently generating about -0.06 per unit of risk. If you would invest 1,300 in Online Brands Nordic on August 24, 2024 and sell it today you would lose (215.00) from holding Online Brands Nordic or give up 16.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Online Brands Nordic vs. Nilsson Special Vehicles
Performance |
| Timeline |
| Online Brands Nordic |
| Nilsson Special Vehicles |
Online Brands and Nilsson Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Online Brands and Nilsson Special
The main advantage of trading using opposite Online Brands and Nilsson Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Online Brands position performs unexpectedly, Nilsson Special 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 Nilsson Special will offset losses from the drop in Nilsson Special's long position.| Online Brands vs. NetJobs Group AB | Online Brands vs. Mantex AB | Online Brands vs. Doxa AB | Online Brands vs. Clean Motion AB |
| Nilsson Special vs. Volvo Car AB | Nilsson Special vs. KABE Group AB | Nilsson Special vs. IAR Systems Group | Nilsson Special vs. Norva24 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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