Correlation Between Zignsec AB and Nyfosa AB
Can any of the company-specific risk be diversified away by investing in both Zignsec AB and Nyfosa AB 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 Zignsec AB and Nyfosa AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zignsec AB and Nyfosa AB, you can compare the effects of market volatilities on Zignsec AB and Nyfosa AB 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 Zignsec AB with a short position of Nyfosa AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zignsec AB and Nyfosa AB.
Diversification Opportunities for Zignsec AB and Nyfosa AB
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zignsec and Nyfosa is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zignsec AB and Nyfosa AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyfosa AB and Zignsec AB 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 Zignsec AB are associated (or correlated) with Nyfosa AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyfosa AB has no effect on the direction of Zignsec AB i.e., Zignsec AB and Nyfosa AB go up and down completely randomly.
Pair Corralation between Zignsec AB and Nyfosa AB
Assuming the 90 days trading horizon Zignsec AB is expected to generate 0.98 times more return on investment than Nyfosa AB. However, Zignsec AB is 1.02 times less risky than Nyfosa AB. It trades about 0.2 of its potential returns per unit of risk. Nyfosa AB is currently generating about -0.2 per unit of risk. If you would invest 127.00 in Zignsec AB on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Zignsec AB or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zignsec AB vs. Nyfosa AB
Performance |
| Timeline |
| Zignsec AB |
| Nyfosa AB |
Zignsec AB and Nyfosa AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zignsec AB and Nyfosa AB
The main advantage of trading using opposite Zignsec AB and Nyfosa AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zignsec AB position performs unexpectedly, Nyfosa AB 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 Nyfosa AB will offset losses from the drop in Nyfosa AB's long position.| Zignsec AB vs. Smart Eye AB | Zignsec AB vs. Embracer Group AB | Zignsec AB vs. Zwipe AS | Zignsec AB vs. Sinch AB |
| Nyfosa AB vs. Goobit Group AB | Nyfosa AB vs. CoinShares International | Nyfosa AB vs. Zignsec AB | Nyfosa AB vs. Checkin 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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