Correlation Between Nexam Chemical and JonDeTech Sensors
Can any of the company-specific risk be diversified away by investing in both Nexam Chemical and JonDeTech Sensors 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 JonDeTech Sensors 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 JonDeTech Sensors, you can compare the effects of market volatilities on Nexam Chemical and JonDeTech Sensors 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 JonDeTech Sensors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexam Chemical and JonDeTech Sensors.
Diversification Opportunities for Nexam Chemical and JonDeTech Sensors
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nexam and JonDeTech is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nexam Chemical Holding and JonDeTech Sensors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JonDeTech Sensors 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 JonDeTech Sensors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JonDeTech Sensors has no effect on the direction of Nexam Chemical i.e., Nexam Chemical and JonDeTech Sensors go up and down completely randomly.
Pair Corralation between Nexam Chemical and JonDeTech Sensors
Assuming the 90 days trading horizon Nexam Chemical Holding is expected to generate 0.5 times more return on investment than JonDeTech Sensors. However, Nexam Chemical Holding is 1.98 times less risky than JonDeTech Sensors. It trades about -0.09 of its potential returns per unit of risk. JonDeTech Sensors is currently generating about -0.05 per unit of risk. If you would invest 486.00 in Nexam Chemical Holding on September 5, 2024 and sell it today you would lose (100.00) from holding Nexam Chemical Holding or give up 20.58% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nexam Chemical Holding vs. JonDeTech Sensors
Performance |
Timeline |
Nexam Chemical Holding |
JonDeTech Sensors |
Nexam Chemical and JonDeTech Sensors Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nexam Chemical and JonDeTech Sensors
The main advantage of trading using opposite Nexam Chemical and JonDeTech Sensors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexam Chemical position performs unexpectedly, JonDeTech Sensors 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 JonDeTech Sensors will offset losses from the drop in JonDeTech Sensors' long position.Nexam Chemical vs. Auriant Mining AB | Nexam Chemical vs. aXichem AB | Nexam Chemical vs. Clean Motion AB | Nexam Chemical vs. KABE Group AB |
JonDeTech Sensors vs. Ranplan Group | JonDeTech Sensors vs. Divio Technologies AB | JonDeTech Sensors vs. XMReality AB | JonDeTech Sensors vs. KABE Group 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 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.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |