Correlation Between Mavshack Publ and NetJobs Group

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

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

Diversification Opportunities for Mavshack Publ and NetJobs Group

-0.3

Correlation Coefficient

Mavshack Publ  NetJobs Group

Very good diversification

The 3 months correlation between Mavshack and NetJobs is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mavshack publ 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 Mavshack Publ 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 Mavshack publ 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 Mavshack Publ i.e., Mavshack Publ and NetJobs Group go up and down completely randomly.

Pair Corralation between Mavshack Publ and NetJobs Group

Assuming the 90 days trading horizon Mavshack Publ is expected to generate 1.11 times less return on investment than NetJobs Group. In addition to that, Mavshack Publ is 2.46 times more volatile than NetJobs Group AB. It trades about 0.04 of its total potential returns per unit of risk. NetJobs Group AB is currently generating about 0.11 per unit of volatility. If you would invest  38.00  in NetJobs Group AB on December 2, 2024 and sell it today you would earn a total of  7.00  from holding NetJobs Group AB or generate 18.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	92.86%
Values	Daily Returns

Mavshack publ AB  vs.  NetJobs Group AB

Mavshack publ AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mavshack publ AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mavshack Publ may actually be approaching a critical reversion point that can send shares even higher in April 2025.

NetJobs Group AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NetJobs Group AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, NetJobs Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mavshack Publ and NetJobs Group

The main advantage of trading using opposite Mavshack Publ and NetJobs Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mavshack Publ 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 Mavshack publ 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.