Correlation Between Nederman Holding and Green Landscaping

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

By analyzing existing cross correlation between Nederman Holding AB and Green Landscaping Group, you can compare the effects of market volatilities on Nederman Holding and Green Landscaping 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 Nederman Holding with a short position of Green Landscaping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nederman Holding and Green Landscaping.

Diversification Opportunities for Nederman Holding and Green Landscaping

0.36

Correlation Coefficient

Nederman Holding  Green Landscaping

Weak diversification

The 3 months correlation between Nederman and Green is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nederman Holding AB and Green Landscaping Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Landscaping and Nederman Holding 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 Nederman Holding AB are associated (or correlated) with Green Landscaping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Landscaping has no effect on the direction of Nederman Holding i.e., Nederman Holding and Green Landscaping go up and down completely randomly.

Pair Corralation between Nederman Holding and Green Landscaping

Assuming the 90 days trading horizon Nederman Holding AB is expected to under-perform the Green Landscaping. But the stock apears to be less risky and, when comparing its historical volatility, Nederman Holding AB is 1.18 times less risky than Green Landscaping. The stock trades about -0.03 of its potential returns per unit of risk. The Green Landscaping Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  6,000  in Green Landscaping Group on April 24, 2025 and sell it today you would lose (50.00) from holding Green Landscaping Group or give up 0.83% of portfolio value over 90 days.

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

Nederman Holding AB  vs.  Green Landscaping Group

Nederman Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nederman Holding AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nederman Holding is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Green Landscaping

Risk-Adjusted Performance

Very Weak

Over the last 90 days Green Landscaping Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Green Landscaping is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Nederman Holding and Green Landscaping

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

The idea behind Nederman Holding AB and Green Landscaping 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.

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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.