Correlation Between Nicoccino Holding and NetJobs Group

Can any of the company-specific risk be diversified away by investing in both Nicoccino Holding and NetJobs Group 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 NetJobs Group 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 NetJobs Group AB, you can compare the effects of market volatilities on Nicoccino Holding and NetJobs Group 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 NetJobs Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicoccino Holding and NetJobs Group.

Diversification Opportunities for Nicoccino Holding and NetJobs Group

-0.46

Correlation Coefficient

Nicoccino Holding  NetJobs Group

Very good diversification

The 3 months correlation between Nicoccino and NetJobs is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nicoccino Holding AB and NetJobs Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetJobs Group 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 NetJobs Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetJobs Group AB has no effect on the direction of Nicoccino Holding i.e., Nicoccino Holding and NetJobs Group go up and down completely randomly.

Pair Corralation between Nicoccino Holding and NetJobs Group

Assuming the 90 days trading horizon Nicoccino Holding is expected to generate 25.98 times less return on investment than NetJobs Group. In addition to that, Nicoccino Holding is 1.92 times more volatile than NetJobs Group AB. It trades about 0.0 of its total potential returns per unit of risk. NetJobs Group AB is currently generating about 0.1 per unit of volatility. If you would invest  35.00  in NetJobs Group AB on September 12, 2024 and sell it today you would earn a total of  9.00  from holding NetJobs Group AB or generate 25.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nicoccino Holding AB  vs.  NetJobs Group AB

Nicoccino Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nicoccino Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nicoccino Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

NetJobs Group AB

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NetJobs 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, NetJobs Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nicoccino Holding and NetJobs Group

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

The idea behind Nicoccino Holding AB and NetJobs Group 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 Transaction History module to view history of all your transactions and understand their impact on performance.