Correlation Between Doxa AB and NetJobs Group

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

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

Diversification Opportunities for Doxa AB and NetJobs Group

-0.01

Correlation Coefficient

Doxa AB  NetJobs Group

Good diversification

The 3 months correlation between Doxa and NetJobs is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Doxa AB and NetJobs Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetJobs Group AB and Doxa AB 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 Doxa AB are associated (or correlated) with NetJobs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetJobs Group AB has no effect on the direction of Doxa AB i.e., Doxa AB and NetJobs Group go up and down completely randomly.

Pair Corralation between Doxa AB and NetJobs Group

Assuming the 90 days trading horizon Doxa AB is expected to under-perform the NetJobs Group. But the stock apears to be less risky and, when comparing its historical volatility, Doxa AB is 1.38 times less risky than NetJobs Group. The stock trades about -0.11 of its potential returns per unit of risk. The NetJobs Group AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  39.00  in NetJobs Group AB on September 1, 2024 and sell it today you would lose (3.00) from holding NetJobs Group AB or give up 7.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Doxa AB  vs.  NetJobs Group AB

Doxa AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doxa AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

NetJobs Group AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NetJobs Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, NetJobs Group 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 Doxa AB and NetJobs Group

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

The idea behind Doxa AB and NetJobs Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.