Correlation Between Nexstim Oyj and Rush Factory

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

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

Diversification Opportunities for Nexstim Oyj and Rush Factory

0.0

Correlation Coefficient

Nexstim Oyj  Rush Factory

Pay attention - limited upside

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

Pair Corralation between Nexstim Oyj and Rush Factory

If you would invest  790.00  in Nexstim Oyj on December 30, 2024 and sell it today you would lose (2.00) from holding Nexstim Oyj or give up 0.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Nexstim Oyj  vs.  Rush Factory Oyj

Nexstim Oyj

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nexstim Oyj are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Nexstim Oyj is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Rush Factory Oyj

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rush Factory Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Rush Factory is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Nexstim Oyj and Rush Factory

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

The idea behind Nexstim Oyj and Rush Factory Oyj 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.