Correlation Between CARSALESCOM and NESTE OYJ
Can any of the company-specific risk be diversified away by investing in both CARSALESCOM and NESTE OYJ 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 CARSALESCOM and NESTE OYJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CARSALESCOM and NESTE OYJ UNSPADR, you can compare the effects of market volatilities on CARSALESCOM and NESTE OYJ 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 CARSALESCOM with a short position of NESTE OYJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALESCOM and NESTE OYJ.
Diversification Opportunities for CARSALESCOM and NESTE OYJ
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CARSALESCOM and NESTE is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR and CARSALESCOM 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 CARSALESCOM are associated (or correlated) with NESTE OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTE OYJ UNSPADR has no effect on the direction of CARSALESCOM i.e., CARSALESCOM and NESTE OYJ go up and down completely randomly.
Pair Corralation between CARSALESCOM and NESTE OYJ
Assuming the 90 days trading horizon CARSALESCOM is expected to generate 0.54 times more return on investment than NESTE OYJ. However, CARSALESCOM is 1.84 times less risky than NESTE OYJ. It trades about -0.02 of its potential returns per unit of risk. NESTE OYJ UNSPADR is currently generating about -0.02 per unit of risk. If you would invest 2,380 in CARSALESCOM on October 11, 2024 and sell it today you would lose (20.00) from holding CARSALESCOM or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARSALESCOM vs. NESTE OYJ UNSPADR
Performance |
| Timeline |
| CARSALESCOM |
| NESTE OYJ UNSPADR |
CARSALESCOM and NESTE OYJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARSALESCOM and NESTE OYJ
The main advantage of trading using opposite CARSALESCOM and NESTE OYJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALESCOM position performs unexpectedly, NESTE OYJ 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 NESTE OYJ will offset losses from the drop in NESTE OYJ's long position.| CARSALESCOM vs. FIREWEED METALS P | CARSALESCOM vs. Zijin Mining Group | CARSALESCOM vs. ALGOMA STEEL GROUP | CARSALESCOM vs. COSMOSTEEL HLDGS |
| NESTE OYJ vs. Gaztransport Technigaz SA | NESTE OYJ vs. CARSALESCOM | NESTE OYJ vs. ZhongAn Online P | NESTE OYJ vs. Transport International Holdings |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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