Correlation Between Online Brands and Link Prop
Can any of the company-specific risk be diversified away by investing in both Online Brands and Link Prop 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 Online Brands and Link Prop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Online Brands Nordic and Link Prop Investment, you can compare the effects of market volatilities on Online Brands and Link Prop 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 Online Brands with a short position of Link Prop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Online Brands and Link Prop.
Diversification Opportunities for Online Brands and Link Prop
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Online and Link is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Online Brands Nordic and Link Prop Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Prop Investment and Online Brands 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 Online Brands Nordic are associated (or correlated) with Link Prop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Prop Investment has no effect on the direction of Online Brands i.e., Online Brands and Link Prop go up and down completely randomly.
Pair Corralation between Online Brands and Link Prop
Assuming the 90 days trading horizon Online Brands Nordic is expected to generate 3.41 times more return on investment than Link Prop. However, Online Brands is 3.41 times more volatile than Link Prop Investment. It trades about 0.08 of its potential returns per unit of risk. Link Prop Investment is currently generating about 0.03 per unit of risk. If you would invest 1,300 in Online Brands Nordic on August 28, 2025 and sell it today you would earn a total of 185.00 from holding Online Brands Nordic or generate 14.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Online Brands Nordic vs. Link Prop Investment
Performance |
| Timeline |
| Online Brands Nordic |
| Link Prop Investment |
Online Brands and Link Prop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Online Brands and Link Prop
The main advantage of trading using opposite Online Brands and Link Prop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Online Brands position performs unexpectedly, Link Prop 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 Link Prop will offset losses from the drop in Link Prop's long position.| Online Brands vs. Arion banki hf | Online Brands vs. Nordea Bank Abp | Online Brands vs. Havsfrun Investment AB | Online Brands vs. Systemair AB |
| Link Prop vs. AB Sagax | Link Prop vs. KABE Group AB | Link Prop vs. USWE Sports AB | Link Prop vs. Lindab International AB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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