Correlation Between NIBE Industrier and Antelope Enterprise

Can any of the company-specific risk be diversified away by investing in both NIBE Industrier and Antelope Enterprise 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 NIBE Industrier and Antelope Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NIBE Industrier AB and Antelope Enterprise Holdings, you can compare the effects of market volatilities on NIBE Industrier and Antelope Enterprise 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 NIBE Industrier with a short position of Antelope Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIBE Industrier and Antelope Enterprise.

Diversification Opportunities for NIBE Industrier and Antelope Enterprise

0.6

Correlation Coefficient

NIBE Industrier  Antelope Enterprise

Poor diversification

The 3 months correlation between NIBE and Antelope is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding NIBE Industrier AB and Antelope Enterprise Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antelope Enterprise and NIBE Industrier 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 NIBE Industrier AB are associated (or correlated) with Antelope Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antelope Enterprise has no effect on the direction of NIBE Industrier i.e., NIBE Industrier and Antelope Enterprise go up and down completely randomly.

Pair Corralation between NIBE Industrier and Antelope Enterprise

Assuming the 90 days horizon NIBE Industrier AB is expected to generate 0.64 times more return on investment than Antelope Enterprise. However, NIBE Industrier AB is 1.55 times less risky than Antelope Enterprise. It trades about 0.23 of its potential returns per unit of risk. Antelope Enterprise Holdings is currently generating about -0.09 per unit of risk. If you would invest  429.00  in NIBE Industrier AB on September 25, 2024 and sell it today you would earn a total of  148.00  from holding NIBE Industrier AB or generate 34.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

NIBE Industrier AB  vs.  Antelope Enterprise Holdings

NIBE Industrier AB

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NIBE Industrier AB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting fundamental drivers, NIBE Industrier reported solid returns over the last few months and may actually be approaching a breakup point.

Antelope Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Antelope Enterprise Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with NIBE Industrier and Antelope Enterprise

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

The idea behind NIBE Industrier AB and Antelope Enterprise Holdings 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.