Correlation Between Cantargia and Niloerngruppen

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

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

Diversification Opportunities for Cantargia and Niloerngruppen

0.08

Correlation Coefficient

Cantargia  Niloerngruppen

Significant diversification

The 3 months correlation between Cantargia and Niloerngruppen is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cantargia AB and Niloerngruppen AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niloerngruppen AB Series and Cantargia 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 Cantargia AB are associated (or correlated) with Niloerngruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niloerngruppen AB Series has no effect on the direction of Cantargia i.e., Cantargia and Niloerngruppen go up and down completely randomly.

Pair Corralation between Cantargia and Niloerngruppen

Assuming the 90 days trading horizon Cantargia AB is expected to under-perform the Niloerngruppen. In addition to that, Cantargia is 3.52 times more volatile than Niloerngruppen AB Series. It trades about -0.16 of its total potential returns per unit of risk. Niloerngruppen AB Series is currently generating about 0.05 per unit of volatility. If you would invest  6,560  in Niloerngruppen AB Series on October 22, 2024 and sell it today you would earn a total of  220.00  from holding Niloerngruppen AB Series or generate 3.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Cantargia AB  vs.  Niloerngruppen AB Series

Cantargia AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cantargia AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Niloerngruppen AB Series

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Niloerngruppen AB Series are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Niloerngruppen is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cantargia and Niloerngruppen

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

The idea behind Cantargia AB and Niloerngruppen AB Series 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.