Correlation Between Antelope Enterprise and NIBE Industrier

Can any of the company-specific risk be diversified away by investing in both Antelope Enterprise and NIBE Industrier 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 Antelope Enterprise and NIBE Industrier into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Antelope Enterprise Holdings and NIBE Industrier AB, you can compare the effects of market volatilities on Antelope Enterprise and NIBE Industrier 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 Antelope Enterprise with a short position of NIBE Industrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antelope Enterprise and NIBE Industrier.

Diversification Opportunities for Antelope Enterprise and NIBE Industrier

0.6

Correlation Coefficient

Antelope Enterprise  NIBE Industrier

Poor diversification

The 3 months correlation between Antelope and NIBE is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Antelope Enterprise Holdings and NIBE Industrier AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIBE Industrier AB and Antelope Enterprise 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 Antelope Enterprise Holdings are associated (or correlated) with NIBE Industrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIBE Industrier AB has no effect on the direction of Antelope Enterprise i.e., Antelope Enterprise and NIBE Industrier go up and down completely randomly.

Pair Corralation between Antelope Enterprise and NIBE Industrier

Given the investment horizon of 90 days Antelope Enterprise Holdings is expected to under-perform the NIBE Industrier. In addition to that, Antelope Enterprise is 1.55 times more volatile than NIBE Industrier AB. It trades about -0.09 of its total potential returns per unit of risk. NIBE Industrier AB is currently generating about 0.23 per unit of volatility. If you would invest  429.00  in NIBE Industrier AB on September 25, 2024 and sell it today you would earn a total of  148.00  from holding NIBE Industrier AB or generate 34.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Antelope Enterprise Holdings  vs.  NIBE Industrier AB

Antelope Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antelope Enterprise Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

NIBE Industrier AB

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NIBE Industrier AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting fundamental drivers, NIBE Industrier reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Antelope Enterprise and NIBE Industrier

The main advantage of trading using opposite Antelope Enterprise and NIBE Industrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antelope Enterprise position performs unexpectedly, NIBE Industrier 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 NIBE Industrier will offset losses from the drop in NIBE Industrier's long position.

The idea behind Antelope Enterprise Holdings and NIBE Industrier AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.