Correlation Between Omer Decugis and NFL Biosciences

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

By analyzing existing cross correlation between Omer Decugis Cie and NFL Biosciences SAS, you can compare the effects of market volatilities on Omer Decugis and NFL Biosciences 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 Omer Decugis with a short position of NFL Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Omer Decugis and NFL Biosciences.

Diversification Opportunities for Omer Decugis and NFL Biosciences

0.1

Correlation Coefficient

Omer Decugis  NFL Biosciences

Average diversification

The 3 months correlation between Omer and NFL is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Omer Decugis Cie and NFL Biosciences SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFL Biosciences SAS and Omer Decugis 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 Omer Decugis Cie are associated (or correlated) with NFL Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFL Biosciences SAS has no effect on the direction of Omer Decugis i.e., Omer Decugis and NFL Biosciences go up and down completely randomly.

Pair Corralation between Omer Decugis and NFL Biosciences

Assuming the 90 days trading horizon Omer Decugis Cie is expected to under-perform the NFL Biosciences. But the stock apears to be less risky and, when comparing its historical volatility, Omer Decugis Cie is 1.78 times less risky than NFL Biosciences. The stock trades about -0.08 of its potential returns per unit of risk. The NFL Biosciences SAS is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  202.00  in NFL Biosciences SAS on September 30, 2024 and sell it today you would lose (17.00) from holding NFL Biosciences SAS or give up 8.42% of portfolio value over 90 days.

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

Omer Decugis Cie  vs.  NFL Biosciences SAS

Omer Decugis Cie

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Omer Decugis Cie has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Omer Decugis is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

NFL Biosciences SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NFL Biosciences SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Omer Decugis and NFL Biosciences

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

The idea behind Omer Decugis Cie and NFL Biosciences SAS 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.