Correlation Between XpresSpa and North Media

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

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

Diversification Opportunities for XpresSpa and North Media

0.0

Correlation Coefficient

XpresSpa  North Media

Pay attention - limited upside

The 3 months correlation between XpresSpa and North is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XpresSpa Group and North Media AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Media AS and XpresSpa 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 XpresSpa Group are associated (or correlated) with North Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Media AS has no effect on the direction of XpresSpa i.e., XpresSpa and North Media go up and down completely randomly.

Pair Corralation between XpresSpa and North Media

If you would invest (100.00) in XpresSpa Group on January 19, 2024 and sell it today you would earn a total of  100.00  from holding XpresSpa Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

XpresSpa Group  vs.  North Media AS

XpresSpa Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XpresSpa Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, XpresSpa is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

North Media AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days North Media AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with XpresSpa and North Media

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

The idea behind XpresSpa Group and North Media AS 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.