Correlation Between Appen and Nagarro SE
Can any of the company-specific risk be diversified away by investing in both Appen and Nagarro SE 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 Appen and Nagarro SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appen Limited and Nagarro SE, you can compare the effects of market volatilities on Appen and Nagarro SE 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 Appen with a short position of Nagarro SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appen and Nagarro SE.
Diversification Opportunities for Appen and Nagarro SE
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Appen and Nagarro is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Appen Limited and Nagarro SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nagarro SE and Appen 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 Appen Limited are associated (or correlated) with Nagarro SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nagarro SE has no effect on the direction of Appen i.e., Appen and Nagarro SE go up and down completely randomly.
Pair Corralation between Appen and Nagarro SE
Assuming the 90 days horizon Appen Limited is expected to under-perform the Nagarro SE. In addition to that, Appen is 2.73 times more volatile than Nagarro SE. It trades about -0.05 of its total potential returns per unit of risk. Nagarro SE is currently generating about 0.0 per unit of volatility. If you would invest 8,421 in Nagarro SE on December 29, 2024 and sell it today you would lose (209.00) from holding Nagarro SE or give up 2.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.31% |
Values | Daily Returns |
Appen Limited vs. Nagarro SE
Performance |
Timeline |
Appen Limited |
Nagarro SE |
Appen and Nagarro SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Appen and Nagarro SE
The main advantage of trading using opposite Appen and Nagarro SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appen position performs unexpectedly, Nagarro SE 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 Nagarro SE will offset losses from the drop in Nagarro SE's long position.Appen vs. Appen Limited | Appen vs. Direct Communication Solutions | Appen vs. Capgemini SE ADR | Appen vs. Quisitive Technology Solutions |
Nagarro SE vs. Quisitive Technology Solutions | Nagarro SE vs. Deveron Corp | Nagarro SE vs. Appen Limited | Nagarro SE vs. Appen Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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