Correlation Between Alefarm Brewing and Nordinvestments

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

By analyzing existing cross correlation between Alefarm Brewing AS and Nordinvestments AS, you can compare the effects of market volatilities on Alefarm Brewing and Nordinvestments 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 Alefarm Brewing with a short position of Nordinvestments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alefarm Brewing and Nordinvestments.

Diversification Opportunities for Alefarm Brewing and Nordinvestments

0.0

Correlation Coefficient

Alefarm Brewing  Nordinvestments

Pay attention - limited upside

The 3 months correlation between Alefarm and Nordinvestments is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alefarm Brewing AS and Nordinvestments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordinvestments AS and Alefarm Brewing 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 Alefarm Brewing AS are associated (or correlated) with Nordinvestments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordinvestments AS has no effect on the direction of Alefarm Brewing i.e., Alefarm Brewing and Nordinvestments go up and down completely randomly.

Pair Corralation between Alefarm Brewing and Nordinvestments

If you would invest  123.00  in Nordinvestments AS on October 5, 2024 and sell it today you would earn a total of  0.00  from holding Nordinvestments AS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alefarm Brewing AS  vs.  Nordinvestments AS

Alefarm Brewing AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alefarm Brewing AS 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 and fundamental indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Nordinvestments AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nordinvestments AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Nordinvestments is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Alefarm Brewing and Nordinvestments

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

The idea behind Alefarm Brewing AS and Nordinvestments AS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.