Correlation Between NP3 Fastigheter and Cibus Nordic

Can any of the company-specific risk be diversified away by investing in both NP3 Fastigheter and Cibus Nordic 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 NP3 Fastigheter and Cibus Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NP3 Fastigheter AB and Cibus Nordic Real, you can compare the effects of market volatilities on NP3 Fastigheter and Cibus Nordic 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 NP3 Fastigheter with a short position of Cibus Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NP3 Fastigheter and Cibus Nordic.

Diversification Opportunities for NP3 Fastigheter and Cibus Nordic

0.84

Correlation Coefficient

NP3 Fastigheter  Cibus Nordic

Very poor diversification

The 3 months correlation between NP3 and Cibus is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding NP3 Fastigheter AB and Cibus Nordic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibus Nordic Real and NP3 Fastigheter 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 NP3 Fastigheter AB are associated (or correlated) with Cibus Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibus Nordic Real has no effect on the direction of NP3 Fastigheter i.e., NP3 Fastigheter and Cibus Nordic go up and down completely randomly.

Pair Corralation between NP3 Fastigheter and Cibus Nordic

Assuming the 90 days trading horizon NP3 Fastigheter is expected to generate 1.19 times less return on investment than Cibus Nordic. In addition to that, NP3 Fastigheter is 1.38 times more volatile than Cibus Nordic Real. It trades about 0.13 of its total potential returns per unit of risk. Cibus Nordic Real is currently generating about 0.22 per unit of volatility. If you would invest  15,920  in Cibus Nordic Real on April 23, 2025 and sell it today you would earn a total of  2,515  from holding Cibus Nordic Real or generate 15.8% return on investment over 90 days.

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

NP3 Fastigheter AB  vs.  Cibus Nordic Real

NP3 Fastigheter AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NP3 Fastigheter AB are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, NP3 Fastigheter unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cibus Nordic Real

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cibus Nordic Real are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Cibus Nordic unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NP3 Fastigheter and Cibus Nordic

The main advantage of trading using opposite NP3 Fastigheter and Cibus Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NP3 Fastigheter position performs unexpectedly, Cibus Nordic 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 Cibus Nordic will offset losses from the drop in Cibus Nordic's long position.

The idea behind NP3 Fastigheter AB and Cibus Nordic Real 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.