Correlation Between Intevac and Nel ASA
Can any of the company-specific risk be diversified away by investing in both Intevac and Nel ASA 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 Intevac and Nel ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intevac and Nel ASA, you can compare the effects of market volatilities on Intevac and Nel ASA 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 Intevac with a short position of Nel ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intevac and Nel ASA.
Diversification Opportunities for Intevac and Nel ASA
Excellent diversification
The 3 months correlation between Intevac and Nel is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Intevac and Nel ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nel ASA and Intevac 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 Intevac are associated (or correlated) with Nel ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nel ASA has no effect on the direction of Intevac i.e., Intevac and Nel ASA go up and down completely randomly.
Pair Corralation between Intevac and Nel ASA
Given the investment horizon of 90 days Intevac is expected to generate 0.71 times more return on investment than Nel ASA. However, Intevac is 1.42 times less risky than Nel ASA. It trades about 0.18 of its potential returns per unit of risk. Nel ASA is currently generating about -0.02 per unit of risk. If you would invest 268.00 in Intevac on December 1, 2024 and sell it today you would earn a total of 134.00 from holding Intevac or generate 50.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intevac vs. Nel ASA
Performance |
Timeline |
Intevac |
Nel ASA |
Intevac and Nel ASA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intevac and Nel ASA
The main advantage of trading using opposite Intevac and Nel ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intevac position performs unexpectedly, Nel ASA 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 Nel ASA will offset losses from the drop in Nel ASA's long position.Intevac vs. Innovative Solutions and | Intevac vs. Heidrick Struggles International | Intevac vs. ICF International | Intevac vs. PDF Solutions |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |