Correlation Between Cibus Nordic and FastPartner

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

By analyzing existing cross correlation between Cibus Nordic Real and FastPartner AB, you can compare the effects of market volatilities on Cibus Nordic and FastPartner 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 Cibus Nordic with a short position of FastPartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cibus Nordic and FastPartner.

Diversification Opportunities for Cibus Nordic and FastPartner

0.4

Correlation Coefficient

Cibus Nordic  FastPartner

Very weak diversification

The 3 months correlation between Cibus and FastPartner is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cibus Nordic Real and FastPartner AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FastPartner AB and Cibus Nordic 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 Cibus Nordic Real are associated (or correlated) with FastPartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FastPartner AB has no effect on the direction of Cibus Nordic i.e., Cibus Nordic and FastPartner go up and down completely randomly.

Pair Corralation between Cibus Nordic and FastPartner

Assuming the 90 days trading horizon Cibus Nordic Real is expected to generate 0.62 times more return on investment than FastPartner. However, Cibus Nordic Real is 1.62 times less risky than FastPartner. It trades about 0.18 of its potential returns per unit of risk. FastPartner AB is currently generating about 0.03 per unit of risk. If you would invest  16,049  in Cibus Nordic Real on April 25, 2025 and sell it today you would earn a total of  2,081  from holding Cibus Nordic Real or generate 12.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Cibus Nordic Real  vs.  FastPartner AB

Cibus Nordic Real

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cibus Nordic Real are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cibus Nordic unveiled solid returns over the last few months and may actually be approaching a breakup point.

FastPartner AB

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FastPartner AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, FastPartner is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cibus Nordic and FastPartner

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

The idea behind Cibus Nordic Real and FastPartner 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.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.