Correlation Between Matas AS and GN Store

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

By analyzing existing cross correlation between Matas AS and GN Store Nord, you can compare the effects of market volatilities on Matas AS and GN Store 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 Matas AS with a short position of GN Store. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matas AS and GN Store.

Diversification Opportunities for Matas AS and GN Store

0.52

Correlation Coefficient

Matas AS  GN Store

Very weak diversification

The 3 months correlation between Matas and GN Store is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Matas AS and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord and Matas AS 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 Matas AS are associated (or correlated) with GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Matas AS i.e., Matas AS and GN Store go up and down completely randomly.

Pair Corralation between Matas AS and GN Store

Assuming the 90 days trading horizon Matas AS is expected to generate 0.48 times more return on investment than GN Store. However, Matas AS is 2.07 times less risky than GN Store. It trades about -0.01 of its potential returns per unit of risk. GN Store Nord is currently generating about -0.07 per unit of risk. If you would invest  13,540  in Matas AS on December 30, 2024 and sell it today you would lose (200.00) from holding Matas AS or give up 1.48% of portfolio value over 90 days.

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

Matas AS  vs.  GN Store Nord

Matas AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Matas AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Matas AS is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

GN Store Nord

Risk-Adjusted Performance

Very Weak

Over the last 90 days GN Store Nord 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 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.

Pair Trading with Matas AS and GN Store

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

The idea behind Matas AS and GN Store Nord 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 Positions Ratings module to 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.