Correlation Between SECITS Holding and Nicoccino Holding
Can any of the company-specific risk be diversified away by investing in both SECITS Holding and Nicoccino Holding 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 SECITS Holding and Nicoccino Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SECITS Holding AB and Nicoccino Holding AB, you can compare the effects of market volatilities on SECITS Holding and Nicoccino Holding 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 SECITS Holding with a short position of Nicoccino Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SECITS Holding and Nicoccino Holding.
Diversification Opportunities for SECITS Holding and Nicoccino Holding
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SECITS and Nicoccino is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SECITS Holding AB and Nicoccino Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicoccino Holding and SECITS Holding 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 SECITS Holding AB are associated (or correlated) with Nicoccino Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicoccino Holding has no effect on the direction of SECITS Holding i.e., SECITS Holding and Nicoccino Holding go up and down completely randomly.
Pair Corralation between SECITS Holding and Nicoccino Holding
Assuming the 90 days trading horizon SECITS Holding is expected to generate 1.44 times less return on investment than Nicoccino Holding. But when comparing it to its historical volatility, SECITS Holding AB is 1.1 times less risky than Nicoccino Holding. It trades about 0.02 of its potential returns per unit of risk. Nicoccino Holding AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 300.00 in Nicoccino Holding AB on November 9, 2024 and sell it today you would lose (120.00) from holding Nicoccino Holding AB or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SECITS Holding AB vs. Nicoccino Holding AB
Performance |
| Timeline |
| SECITS Holding AB |
| Nicoccino Holding |
SECITS Holding and Nicoccino Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SECITS Holding and Nicoccino Holding
The main advantage of trading using opposite SECITS Holding and Nicoccino Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SECITS Holding position performs unexpectedly, Nicoccino Holding 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 Nicoccino Holding will offset losses from the drop in Nicoccino Holding's long position.| SECITS Holding vs. Enersize Oy | SECITS Holding vs. Zaplox AB | SECITS Holding vs. XMReality AB | SECITS Holding vs. Sonetel AB |
| Nicoccino Holding vs. Clean Motion AB | Nicoccino Holding vs. NetJobs Group AB | Nicoccino Holding vs. Klaria Pharma Holding | Nicoccino Holding vs. Nexam Chemical Holding |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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