Correlation Between Nelly Group and Qliro AB
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
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nelly and Qliro is -0.3. 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 0.08 of its potential returns per unit of risk. Qliro AB is currently generating about 0.03 per unit of risk. If you would invest 2,670 in Nelly Group AB on September 7, 2024 and sell it today you would earn a total of 310.00 from holding Nelly Group AB or generate 11.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nelly Group AB vs. Qliro AB
Performance |
Timeline |
Nelly Group AB |
Qliro AB |
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.Nelly Group vs. Qliro AB | Nelly Group vs. Clas Ohlson AB | Nelly Group vs. Byggmax Group AB | Nelly Group vs. Boozt AB |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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