Correlation Between Nelly Group and Qliro AB

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nelly Group and Qliro AB 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 Nelly Group and Qliro AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nelly Group AB and Qliro AB, you can compare the effects of market volatilities on Nelly Group and Qliro AB 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 Nelly Group with a short position of Qliro AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nelly Group and Qliro AB.

Diversification Opportunities for Nelly Group and Qliro AB

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between Nelly and Qliro is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nelly Group AB and Qliro AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qliro AB and Nelly Group 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 Nelly Group AB are associated (or correlated) with Qliro AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qliro AB has no effect on the direction of Nelly Group i.e., Nelly Group and Qliro AB go up and down completely randomly.

Pair Corralation between Nelly Group and Qliro AB

Assuming the 90 days trading horizon Nelly Group AB is expected to generate 0.94 times more return on investment than Qliro AB. However, Nelly Group AB is 1.06 times less risky than Qliro AB. It trades about 0.09 of its potential returns per unit of risk. Qliro AB is currently generating about 0.04 per unit of risk. If you would invest  2,615  in Nelly Group AB on September 10, 2024 and sell it today you would earn a total of  405.00  from holding Nelly Group AB or generate 15.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nelly Group AB  vs.  Qliro AB

 Performance 
       Timeline  
Nelly Group AB 

Risk-Adjusted Performance

7 of 100

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

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Qliro AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Qliro AB may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Nelly Group and Qliro AB Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nelly Group and Qliro AB

The main advantage of trading using opposite Nelly Group and Qliro AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nelly Group position performs unexpectedly, Qliro AB 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 Qliro AB will offset losses from the drop in Qliro AB's long position.
The idea behind Nelly Group AB and Qliro 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments