Correlation Between Nano One and Colabor

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

By analyzing existing cross correlation between Nano One Materials and Colabor Group, you can compare the effects of market volatilities on Nano One and Colabor 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 Nano One with a short position of Colabor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nano One and Colabor.

Diversification Opportunities for Nano One and Colabor

0.58

Correlation Coefficient

Nano One  Colabor

Very weak diversification

The 3 months correlation between Nano and Colabor is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nano One Materials and Colabor Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colabor Group and Nano One 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 Nano One Materials are associated (or correlated) with Colabor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colabor Group has no effect on the direction of Nano One i.e., Nano One and Colabor go up and down completely randomly.

Pair Corralation between Nano One and Colabor

Assuming the 90 days trading horizon Nano One Materials is expected to generate 1.35 times more return on investment than Colabor. However, Nano One is 1.35 times more volatile than Colabor Group. It trades about 0.15 of its potential returns per unit of risk. Colabor Group is currently generating about 0.05 per unit of risk. If you would invest  68.00  in Nano One Materials on April 22, 2025 and sell it today you would earn a total of  30.00  from holding Nano One Materials or generate 44.12% return on investment over 90 days.

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

Nano One Materials  vs.  Colabor Group

Nano One Materials

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nano One Materials are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Nano One displayed solid returns over the last few months and may actually be approaching a breakup point.

Colabor Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Colabor Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile essential indicators, Colabor may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Nano One and Colabor

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

The idea behind Nano One Materials and Colabor Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.