Correlation Between Train Alliance and Nanoform Finland
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By analyzing existing cross correlation between Train Alliance Sweden and Nanoform Finland Plc, you can compare the effects of market volatilities on Train Alliance and Nanoform Finland 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 Train Alliance with a short position of Nanoform Finland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Train Alliance and Nanoform Finland.
Diversification Opportunities for Train Alliance and Nanoform Finland
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Train and Nanoform is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Train Alliance Sweden and Nanoform Finland Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanoform Finland Plc and Train Alliance 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 Train Alliance Sweden are associated (or correlated) with Nanoform Finland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanoform Finland Plc has no effect on the direction of Train Alliance i.e., Train Alliance and Nanoform Finland go up and down completely randomly.
Pair Corralation between Train Alliance and Nanoform Finland
Assuming the 90 days trading horizon Train Alliance Sweden is expected to under-perform the Nanoform Finland. But the stock apears to be less risky and, when comparing its historical volatility, Train Alliance Sweden is 5.55 times less risky than Nanoform Finland. The stock trades about -0.32 of its potential returns per unit of risk. The Nanoform Finland Plc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,442 in Nanoform Finland Plc on September 3, 2024 and sell it today you would earn a total of 258.00 from holding Nanoform Finland Plc or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Train Alliance Sweden vs. Nanoform Finland Plc
Performance |
| Timeline |
| Train Alliance Sweden |
| Nanoform Finland Plc |
Train Alliance and Nanoform Finland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Train Alliance and Nanoform Finland
The main advantage of trading using opposite Train Alliance and Nanoform Finland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Train Alliance position performs unexpectedly, Nanoform Finland 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 Nanoform Finland will offset losses from the drop in Nanoform Finland's long position.| Train Alliance vs. Sdiptech AB | Train Alliance vs. AB Sagax | Train Alliance vs. Corem Property Group | Train Alliance vs. Volati AB |
| Nanoform Finland vs. Lundin Mining | Nanoform Finland vs. Qleanair Holding AB | Nanoform Finland vs. Maven Wireless Sweden | Nanoform Finland vs. Systemair 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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