Correlation Between Nanalysis Scientific and Codan

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

By analyzing existing cross correlation between Nanalysis Scientific Corp and Codan Limited, you can compare the effects of market volatilities on Nanalysis Scientific and Codan 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 Nanalysis Scientific with a short position of Codan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanalysis Scientific and Codan.

Diversification Opportunities for Nanalysis Scientific and Codan

-0.67

Correlation Coefficient

Nanalysis Scientific  Codan

Excellent diversification

The 3 months correlation between Nanalysis and Codan is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Nanalysis Scientific Corp and Codan Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codan Limited and Nanalysis Scientific 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 Nanalysis Scientific Corp are associated (or correlated) with Codan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codan Limited has no effect on the direction of Nanalysis Scientific i.e., Nanalysis Scientific and Codan go up and down completely randomly.

Pair Corralation between Nanalysis Scientific and Codan

Assuming the 90 days horizon Nanalysis Scientific Corp is expected to under-perform the Codan. But the otc stock apears to be less risky and, when comparing its historical volatility, Nanalysis Scientific Corp is 1.46 times less risky than Codan. The otc stock trades about -0.08 of its potential returns per unit of risk. The Codan Limited is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  730.00  in Codan Limited on April 23, 2025 and sell it today you would earn a total of  329.00  from holding Codan Limited or generate 45.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Nanalysis Scientific Corp  vs.  Codan Limited

Nanalysis Scientific Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nanalysis Scientific Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Codan Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Codan Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Codan reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nanalysis Scientific and Codan

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

The idea behind Nanalysis Scientific Corp and Codan Limited 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.