Correlation Between Nemetschek and Nemetschek

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

By analyzing existing cross correlation between Nemetschek SE and Nemetschek AG ON, you can compare the effects of market volatilities on Nemetschek and Nemetschek 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 Nemetschek with a short position of Nemetschek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nemetschek and Nemetschek.

Diversification Opportunities for Nemetschek and Nemetschek

0.0

Correlation Coefficient

Nemetschek  Nemetschek

Pay attention - limited upside

The 3 months correlation between Nemetschek and Nemetschek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nemetschek SE and Nemetschek AG ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nemetschek AG ON and Nemetschek 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 Nemetschek SE are associated (or correlated) with Nemetschek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nemetschek AG ON has no effect on the direction of Nemetschek i.e., Nemetschek and Nemetschek go up and down completely randomly.

Pair Corralation between Nemetschek and Nemetschek

If you would invest  8,705  in Nemetschek AG ON on October 22, 2024 and sell it today you would earn a total of  1,135  from holding Nemetschek AG ON or generate 13.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.81%
Values	Daily Returns

Nemetschek SE  vs.  Nemetschek AG ON

Nemetschek SE

Risk-Adjusted Performance

0 of 100

Very Weak

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

Nemetschek AG ON

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nemetschek and Nemetschek

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

The idea behind Nemetschek SE and Nemetschek AG ON 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.