Correlation Between Nilsson Special and Mavshack Publ

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

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

Diversification Opportunities for Nilsson Special and Mavshack Publ

-0.07

Correlation Coefficient

Nilsson Special  Mavshack Publ

Good diversification

The 3 months correlation between Nilsson and Mavshack is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nilsson Special Vehicles 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 Nilsson Special 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 Nilsson Special Vehicles 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 Nilsson Special i.e., Nilsson Special and Mavshack Publ go up and down completely randomly.

Pair Corralation between Nilsson Special and Mavshack Publ

Assuming the 90 days trading horizon Nilsson Special Vehicles is expected to generate 0.64 times more return on investment than Mavshack Publ. However, Nilsson Special Vehicles is 1.57 times less risky than Mavshack Publ. It trades about 0.08 of its potential returns per unit of risk. Mavshack publ AB is currently generating about 0.02 per unit of risk. If you would invest  278.00  in Nilsson Special Vehicles on December 2, 2024 and sell it today you would earn a total of  62.00  from holding Nilsson Special Vehicles or generate 22.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Nilsson Special Vehicles  vs.  Mavshack publ AB

Nilsson Special Vehicles

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nilsson Special Vehicles are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Nilsson Special 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 Nilsson Special and Mavshack Publ

The main advantage of trading using opposite Nilsson Special and Mavshack Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nilsson Special 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 Nilsson Special Vehicles 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.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.