Correlation Between Strix Group and Nokia
Can any of the company-specific risk be diversified away by investing in both Strix Group and Nokia 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 Strix Group and Nokia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strix Group Plc and Nokia, you can compare the effects of market volatilities on Strix Group and Nokia 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 Strix Group with a short position of Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strix Group and Nokia.
Diversification Opportunities for Strix Group and Nokia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Strix and Nokia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Strix Group Plc and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia and Strix Group 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 Strix Group Plc are associated (or correlated) with Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of Strix Group i.e., Strix Group and Nokia go up and down completely randomly.
Pair Corralation between Strix Group and Nokia
If you would invest 341.00 in Nokia on September 1, 2024 and sell it today you would earn a total of 55.00 from holding Nokia or generate 16.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Strix Group Plc vs. Nokia
Performance |
| Timeline |
| Strix Group Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nokia |
Strix Group and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strix Group and Nokia
The main advantage of trading using opposite Strix Group and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strix Group position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| Strix Group vs. Penn National Gaming | Strix Group vs. Magnachip Semiconductor | Strix Group vs. ELMOS SEMICONDUCTOR | Strix Group vs. GAMING FAC SA |
| Nokia vs. STRAYER EDUCATION | Nokia vs. CAREER EDUCATION | Nokia vs. MYFAIR GOLD P | Nokia vs. Strategic Education |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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