Correlation Between SinterCast and Northbaze Group

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

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

Diversification Opportunities for SinterCast and Northbaze Group

-0.6

Correlation Coefficient

SinterCast  Northbaze Group

Excellent diversification

The 3 months correlation between SinterCast and Northbaze is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SinterCast AB and Northbaze Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northbaze Group AB and SinterCast 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 SinterCast AB are associated (or correlated) with Northbaze Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northbaze Group AB has no effect on the direction of SinterCast i.e., SinterCast and Northbaze Group go up and down completely randomly.

Pair Corralation between SinterCast and Northbaze Group

Assuming the 90 days trading horizon SinterCast AB is expected to generate 0.23 times more return on investment than Northbaze Group. However, SinterCast AB is 4.43 times less risky than Northbaze Group. It trades about 0.17 of its potential returns per unit of risk. Northbaze Group AB is currently generating about -0.04 per unit of risk. If you would invest  10,002  in SinterCast AB on April 24, 2025 and sell it today you would earn a total of  1,548  from holding SinterCast AB or generate 15.48% return on investment over 90 days.

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

SinterCast AB  vs.  Northbaze Group AB

SinterCast AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinterCast AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SinterCast unveiled solid returns over the last few months and may actually be approaching a breakup point.

Northbaze Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Northbaze Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic 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.

Pair Trading with SinterCast and Northbaze Group

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

The idea behind SinterCast AB and Northbaze Group AB 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.