Correlation Between Niloerngruppen and EWork Group

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

By analyzing existing cross correlation between Niloerngruppen AB Series and eWork Group AB, you can compare the effects of market volatilities on Niloerngruppen and EWork 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 Niloerngruppen with a short position of EWork Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niloerngruppen and EWork Group.

Diversification Opportunities for Niloerngruppen and EWork Group

0.07

Correlation Coefficient

Niloerngruppen  EWork Group

Significant diversification

The 3 months correlation between Niloerngruppen and EWork is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Niloerngruppen AB Series and eWork Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eWork Group AB and Niloerngruppen 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 Niloerngruppen AB Series are associated (or correlated) with EWork Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eWork Group AB has no effect on the direction of Niloerngruppen i.e., Niloerngruppen and EWork Group go up and down completely randomly.

Pair Corralation between Niloerngruppen and EWork Group

Assuming the 90 days trading horizon Niloerngruppen AB Series is expected to under-perform the EWork Group. In addition to that, Niloerngruppen is 3.17 times more volatile than eWork Group AB. It trades about -0.33 of its total potential returns per unit of risk. eWork Group AB is currently generating about -0.51 per unit of volatility. If you would invest  14,200  in eWork Group AB on September 13, 2024 and sell it today you would lose (480.00) from holding eWork Group AB or give up 3.38% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Niloerngruppen AB Series  vs.  eWork Group AB

Niloerngruppen AB Series

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Niloerngruppen AB Series are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Niloerngruppen is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

eWork Group AB

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Niloerngruppen and EWork Group

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

The idea behind Niloerngruppen AB Series and eWork 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.