Correlation Between Nicoccino Holding and Mavshack Publ

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

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

Diversification Opportunities for Nicoccino Holding and Mavshack Publ

0.43

Correlation Coefficient

Nicoccino Holding  Mavshack Publ

Very weak diversification

The 3 months correlation between Nicoccino and Mavshack is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nicoccino Holding AB and Mavshack publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavshack publ AB and Nicoccino Holding 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 Nicoccino Holding AB are associated (or correlated) with Mavshack Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavshack publ AB has no effect on the direction of Nicoccino Holding i.e., Nicoccino Holding and Mavshack Publ go up and down completely randomly.

Pair Corralation between Nicoccino Holding and Mavshack Publ

Assuming the 90 days trading horizon Nicoccino Holding AB is expected to generate 3.51 times more return on investment than Mavshack Publ. However, Nicoccino Holding is 3.51 times more volatile than Mavshack publ AB. It trades about 0.17 of its potential returns per unit of risk. Mavshack publ AB is currently generating about 0.01 per unit of risk. If you would invest  113.00  in Nicoccino Holding AB on December 2, 2024 and sell it today you would earn a total of  47.00  from holding Nicoccino Holding AB or generate 41.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	86.36%
Values	Daily Returns

Nicoccino Holding AB  vs.  Mavshack publ AB

Nicoccino Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nicoccino Holding AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Nicoccino Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Nicoccino Holding and Mavshack Publ

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

The idea behind Nicoccino Holding AB and Mavshack publ 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.