Correlation Between Nexam Chemical and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both Nexam Chemical and Immunovia Publ 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 Nexam Chemical and Immunovia Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexam Chemical Holding and Immunovia publ AB, you can compare the effects of market volatilities on Nexam Chemical and Immunovia Publ 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 Nexam Chemical with a short position of Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexam Chemical and Immunovia Publ.
Diversification Opportunities for Nexam Chemical and Immunovia Publ
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nexam and Immunovia is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nexam Chemical Holding and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ AB and Nexam Chemical 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 Nexam Chemical Holding are associated (or correlated) with Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of Nexam Chemical i.e., Nexam Chemical and Immunovia Publ go up and down completely randomly.
Pair Corralation between Nexam Chemical and Immunovia Publ
Assuming the 90 days trading horizon Nexam Chemical Holding is expected to under-perform the Immunovia Publ. But the stock apears to be less risky and, when comparing its historical volatility, Nexam Chemical Holding is 3.03 times less risky than Immunovia Publ. The stock trades about -0.11 of its potential returns per unit of risk. The Immunovia publ AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 75.00 in Immunovia publ AB on September 11, 2024 and sell it today you would earn a total of 10.00 from holding Immunovia publ AB or generate 13.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nexam Chemical Holding vs. Immunovia publ AB
Performance |
Timeline |
Nexam Chemical Holding |
Immunovia publ AB |
Nexam Chemical and Immunovia Publ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nexam Chemical and Immunovia Publ
The main advantage of trading using opposite Nexam Chemical and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexam Chemical position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.Nexam Chemical vs. Polygiene AB | Nexam Chemical vs. Svenska Aerogel Holding | Nexam Chemical vs. Organoclick AB | Nexam Chemical vs. Kancera AB |
Immunovia Publ vs. Oncopeptides AB | Immunovia Publ vs. Hansa Biopharma AB | Immunovia Publ vs. Cantargia AB | Immunovia Publ vs. Camurus AB |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Equity Valuation Check real value of public entities based on technical and fundamental data |