Correlation Between Neinor Homes and Vytrus Biotech

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

By analyzing existing cross correlation between Neinor Homes SLU and Vytrus Biotech SA, you can compare the effects of market volatilities on Neinor Homes and Vytrus Biotech 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 Neinor Homes with a short position of Vytrus Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neinor Homes and Vytrus Biotech.

Diversification Opportunities for Neinor Homes and Vytrus Biotech

0.82

Correlation Coefficient

Neinor Homes  Vytrus Biotech

Very poor diversification

The 3 months correlation between Neinor and Vytrus is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Neinor Homes SLU and Vytrus Biotech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vytrus Biotech SA and Neinor Homes 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 Neinor Homes SLU are associated (or correlated) with Vytrus Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vytrus Biotech SA has no effect on the direction of Neinor Homes i.e., Neinor Homes and Vytrus Biotech go up and down completely randomly.

Pair Corralation between Neinor Homes and Vytrus Biotech

Assuming the 90 days trading horizon Neinor Homes is expected to generate 2.56 times less return on investment than Vytrus Biotech. In addition to that, Neinor Homes is 1.22 times more volatile than Vytrus Biotech SA. It trades about 0.11 of its total potential returns per unit of risk. Vytrus Biotech SA is currently generating about 0.36 per unit of volatility. If you would invest  320.00  in Vytrus Biotech SA on April 25, 2025 and sell it today you would earn a total of  205.00  from holding Vytrus Biotech SA or generate 64.06% return on investment over 90 days.

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

Neinor Homes SLU  vs.  Vytrus Biotech SA

Neinor Homes SLU

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Neinor Homes SLU are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Neinor Homes exhibited solid returns over the last few months and may actually be approaching a breakup point.

Vytrus Biotech SA

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Vytrus Biotech SA are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Vytrus Biotech exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Neinor Homes and Vytrus Biotech

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

The idea behind Neinor Homes SLU and Vytrus Biotech SA 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.