Correlation Between Nice Information and Wireless Power
Can any of the company-specific risk be diversified away by investing in both Nice Information and Wireless Power 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 Nice Information and Wireless Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice Information Telecommunication and Wireless Power Amplifier, you can compare the effects of market volatilities on Nice Information and Wireless Power 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 Nice Information with a short position of Wireless Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and Wireless Power.
Diversification Opportunities for Nice Information and Wireless Power
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nice and Wireless is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and Wireless Power Amplifier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wireless Power Amplifier and Nice Information 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 Nice Information Telecommunication are associated (or correlated) with Wireless Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wireless Power Amplifier has no effect on the direction of Nice Information i.e., Nice Information and Wireless Power go up and down completely randomly.
Pair Corralation between Nice Information and Wireless Power
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to generate 0.4 times more return on investment than Wireless Power. However, Nice Information Telecommunication is 2.52 times less risky than Wireless Power. It trades about -0.12 of its potential returns per unit of risk. Wireless Power Amplifier is currently generating about -0.11 per unit of risk. If you would invest 2,155,000 in Nice Information Telecommunication on September 2, 2024 and sell it today you would lose (314,000) from holding Nice Information Telecommunication or give up 14.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice Information Telecommunica vs. Wireless Power Amplifier
Performance |
| Timeline |
| Nice Information Tel |
| Wireless Power Amplifier |
Nice Information and Wireless Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and Wireless Power
The main advantage of trading using opposite Nice Information and Wireless Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, Wireless Power 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 Wireless Power will offset losses from the drop in Wireless Power's long position.| Nice Information vs. Dongsin Engineering Construction | Nice Information vs. Doosan Fuel Cell | Nice Information vs. Daishin Balance 1 | Nice Information vs. Total Soft Bank |
| Wireless Power vs. Daejoo Electronic Materials | Wireless Power vs. Parksystems Corp | Wireless Power vs. BH Co | Wireless Power vs. Partron Co |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |