Correlation Between Cinis Fertilizer and Nilsson Special

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

By analyzing existing cross correlation between Cinis Fertilizer AB and Nilsson Special Vehicles, you can compare the effects of market volatilities on Cinis Fertilizer and Nilsson Special 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 Cinis Fertilizer with a short position of Nilsson Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinis Fertilizer and Nilsson Special.

Diversification Opportunities for Cinis Fertilizer and Nilsson Special

0.79

Correlation Coefficient

Cinis Fertilizer  Nilsson Special

Poor diversification

The 3 months correlation between Cinis and Nilsson is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cinis Fertilizer AB and Nilsson Special Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nilsson Special Vehicles and Cinis Fertilizer 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 Cinis Fertilizer AB are associated (or correlated) with Nilsson Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nilsson Special Vehicles has no effect on the direction of Cinis Fertilizer i.e., Cinis Fertilizer and Nilsson Special go up and down completely randomly.

Pair Corralation between Cinis Fertilizer and Nilsson Special

Assuming the 90 days trading horizon Cinis Fertilizer AB is expected to under-perform the Nilsson Special. In addition to that, Cinis Fertilizer is 1.07 times more volatile than Nilsson Special Vehicles. It trades about -0.15 of its total potential returns per unit of risk. Nilsson Special Vehicles is currently generating about 0.0 per unit of volatility. If you would invest  236.00  in Nilsson Special Vehicles on April 23, 2025 and sell it today you would lose (16.00) from holding Nilsson Special Vehicles or give up 6.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Cinis Fertilizer AB  vs.  Nilsson Special Vehicles

Cinis Fertilizer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cinis Fertilizer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Nilsson Special Vehicles

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nilsson Special Vehicles has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cinis Fertilizer and Nilsson Special

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

The idea behind Cinis Fertilizer AB and Nilsson Special Vehicles 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.