Correlation Between Interface and Neinor Homes

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

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

Diversification Opportunities for Interface and Neinor Homes

0.0

Correlation Coefficient

Interface  Neinor Homes

Pay attention - limited upside

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

Pair Corralation between Interface and Neinor Homes

If you would invest  2,576  in Interface on September 7, 2025 and sell it today you would earn a total of  156.00  from holding Interface or generate 6.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Interface  vs.  Neinor Homes SA

Interface

Risk-Adjusted Performance

Weakest

Over the last 90 days Interface has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Interface is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Neinor Homes SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Neinor Homes SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Neinor Homes is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Interface and Neinor Homes

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

The idea behind Interface and Neinor Homes SA 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.