Correlation Between Ennogie Solar and Nykredit Invest

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Can any of the company-specific risk be diversified away by investing in both Ennogie Solar and Nykredit Invest 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 Ennogie Solar and Nykredit Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ennogie Solar Group and Nykredit Invest Korte, you can compare the effects of market volatilities on Ennogie Solar and Nykredit Invest 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 Ennogie Solar with a short position of Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ennogie Solar and Nykredit Invest.

Diversification Opportunities for Ennogie Solar and Nykredit Invest

-0.1
  Correlation Coefficient

Good diversification

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

Pair Corralation between Ennogie Solar and Nykredit Invest

Assuming the 90 days trading horizon Ennogie Solar Group is expected to under-perform the Nykredit Invest. In addition to that, Ennogie Solar is 42.19 times more volatile than Nykredit Invest Korte. It trades about -0.14 of its total potential returns per unit of risk. Nykredit Invest Korte is currently generating about 0.02 per unit of volatility. If you would invest  9,932  in Nykredit Invest Korte on December 26, 2024 and sell it today you would earn a total of  10.00  from holding Nykredit Invest Korte or generate 0.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ennogie Solar Group  vs.  Nykredit Invest Korte

 Performance 
       Timeline  
Ennogie Solar Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ennogie Solar Group 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 technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Nykredit Invest Korte 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Nykredit Invest Korte are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Nykredit Invest is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Ennogie Solar and Nykredit Invest Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ennogie Solar and Nykredit Invest

The main advantage of trading using opposite Ennogie Solar and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ennogie Solar position performs unexpectedly, Nykredit Invest 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.
The idea behind Ennogie Solar Group and Nykredit Invest Korte 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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