Correlation Between Nexam Chemical and Redsense Medical
Can any of the company-specific risk be diversified away by investing in both Nexam Chemical and Redsense Medical 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 Nexam Chemical and Redsense Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexam Chemical Holding and Redsense Medical AB, you can compare the effects of market volatilities on Nexam Chemical and Redsense Medical 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 Nexam Chemical with a short position of Redsense Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexam Chemical and Redsense Medical.
Diversification Opportunities for Nexam Chemical and Redsense Medical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nexam and Redsense is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nexam Chemical Holding and Redsense Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Redsense Medical and Nexam Chemical 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 Nexam Chemical Holding are associated (or correlated) with Redsense Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Redsense Medical has no effect on the direction of Nexam Chemical i.e., Nexam Chemical and Redsense Medical go up and down completely randomly.
Pair Corralation between Nexam Chemical and Redsense Medical
Assuming the 90 days trading horizon Nexam Chemical Holding is expected to generate 1.09 times more return on investment than Redsense Medical. However, Nexam Chemical is 1.09 times more volatile than Redsense Medical AB. It trades about -0.08 of its potential returns per unit of risk. Redsense Medical AB is currently generating about -0.09 per unit of risk. If you would invest 349.00 in Nexam Chemical Holding on September 2, 2025 and sell it today you would lose (70.00) from holding Nexam Chemical Holding or give up 20.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Nexam Chemical Holding vs. Redsense Medical AB
Performance |
| Timeline |
| Nexam Chemical Holding |
| Redsense Medical |
Nexam Chemical and Redsense Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexam Chemical and Redsense Medical
The main advantage of trading using opposite Nexam Chemical and Redsense Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexam Chemical position performs unexpectedly, Redsense Medical 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 Redsense Medical will offset losses from the drop in Redsense Medical's long position.| Nexam Chemical vs. Arion banki hf | Nexam Chemical vs. Skandinaviska Enskilda Banken | Nexam Chemical vs. AB Volvo | Nexam Chemical vs. AB Volvo |
| Redsense Medical vs. AcadeMedia AB | Redsense Medical vs. Link Prop Investment | Redsense Medical vs. Vitec Software Group | Redsense Medical vs. Nordea Bank Abp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |