Correlation Between ChemoMetec and Nilfisk Holding
Can any of the company-specific risk be diversified away by investing in both ChemoMetec and Nilfisk 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 ChemoMetec and Nilfisk Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChemoMetec AS and Nilfisk Holding AS, you can compare the effects of market volatilities on ChemoMetec and Nilfisk 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 ChemoMetec with a short position of Nilfisk Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChemoMetec and Nilfisk Holding.
Diversification Opportunities for ChemoMetec and Nilfisk Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ChemoMetec and Nilfisk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ChemoMetec AS and Nilfisk Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nilfisk Holding AS and ChemoMetec 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 ChemoMetec AS are associated (or correlated) with Nilfisk Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nilfisk Holding AS has no effect on the direction of ChemoMetec i.e., ChemoMetec and Nilfisk Holding go up and down completely randomly.
Pair Corralation between ChemoMetec and Nilfisk Holding
If you would invest (100.00) in Nilfisk Holding AS on March 7, 2024 and sell it today you would earn a total of 100.00 from holding Nilfisk Holding AS or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
ChemoMetec AS vs. Nilfisk Holding AS
Performance |
Timeline |
ChemoMetec AS |
Nilfisk Holding AS |
ChemoMetec and Nilfisk Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ChemoMetec and Nilfisk Holding
The main advantage of trading using opposite ChemoMetec and Nilfisk Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChemoMetec position performs unexpectedly, Nilfisk 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 Nilfisk Holding will offset losses from the drop in Nilfisk Holding's long position.ChemoMetec vs. cBrain AS | ChemoMetec vs. Ambu AS | ChemoMetec vs. Genmab AS | ChemoMetec vs. Zealand Pharma AS |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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