Correlation Between Klaria Pharma and Nicoccino Holding

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

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

Diversification Opportunities for Klaria Pharma and Nicoccino Holding

0.44

Correlation Coefficient

Klaria Pharma  Nicoccino Holding

Very weak diversification

The 3 months correlation between Klaria and Nicoccino is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Klaria Pharma Holding and Nicoccino Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nicoccino Holding and Klaria Pharma 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 Klaria Pharma Holding are associated (or correlated) with Nicoccino Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nicoccino Holding has no effect on the direction of Klaria Pharma i.e., Klaria Pharma and Nicoccino Holding go up and down completely randomly.

Pair Corralation between Klaria Pharma and Nicoccino Holding

Assuming the 90 days trading horizon Klaria Pharma Holding is expected to generate 1.11 times more return on investment than Nicoccino Holding. However, Klaria Pharma is 1.11 times more volatile than Nicoccino Holding AB. It trades about 0.01 of its potential returns per unit of risk. Nicoccino Holding AB is currently generating about -0.08 per unit of risk. If you would invest  48.00  in Klaria Pharma Holding on September 5, 2024 and sell it today you would lose (9.00) from holding Klaria Pharma Holding or give up 18.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Klaria Pharma Holding  vs.  Nicoccino Holding AB

Klaria Pharma Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Klaria Pharma Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Klaria Pharma is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Nicoccino Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nicoccino Holding 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 January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Klaria Pharma and Nicoccino Holding

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

The idea behind Klaria Pharma Holding and Nicoccino Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.