Correlation Between Gentoo Media and Nanoform Finland

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

By analyzing existing cross correlation between Gentoo Media and Nanoform Finland Plc, you can compare the effects of market volatilities on Gentoo Media and Nanoform Finland 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 Gentoo Media with a short position of Nanoform Finland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentoo Media and Nanoform Finland.

Diversification Opportunities for Gentoo Media and Nanoform Finland

-0.32

Correlation Coefficient

Gentoo Media  Nanoform Finland

Very good diversification

The 3 months correlation between Gentoo and Nanoform is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gentoo Media and Nanoform Finland Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanoform Finland Plc and Gentoo Media 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 Gentoo Media are associated (or correlated) with Nanoform Finland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanoform Finland Plc has no effect on the direction of Gentoo Media i.e., Gentoo Media and Nanoform Finland go up and down completely randomly.

Pair Corralation between Gentoo Media and Nanoform Finland

Assuming the 90 days trading horizon Gentoo Media is expected to under-perform the Nanoform Finland. But the stock apears to be less risky and, when comparing its historical volatility, Gentoo Media is 1.48 times less risky than Nanoform Finland. The stock trades about -0.11 of its potential returns per unit of risk. The Nanoform Finland Plc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,156  in Nanoform Finland Plc on April 22, 2025 and sell it today you would lose (8.00) from holding Nanoform Finland Plc or give up 0.69% of portfolio value over 90 days.

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

Gentoo Media  vs.  Nanoform Finland Plc

Gentoo Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gentoo Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary 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.

Nanoform Finland Plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nanoform Finland Plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Nanoform Finland may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Gentoo Media and Nanoform Finland

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

The idea behind Gentoo Media and Nanoform Finland Plc 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.