Correlation Between NIKKON HOLDINGS and SINGAPORE POST
Can any of the company-specific risk be diversified away by investing in both NIKKON HOLDINGS and SINGAPORE POST 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 NIKKON HOLDINGS and SINGAPORE POST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIKKON HOLDINGS TD and SINGAPORE POST, you can compare the effects of market volatilities on NIKKON HOLDINGS and SINGAPORE POST 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 NIKKON HOLDINGS with a short position of SINGAPORE POST. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIKKON HOLDINGS and SINGAPORE POST.
Diversification Opportunities for NIKKON HOLDINGS and SINGAPORE POST
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NIKKON and SINGAPORE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding NIKKON HOLDINGS TD and SINGAPORE POST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE POST and NIKKON HOLDINGS 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 NIKKON HOLDINGS TD are associated (or correlated) with SINGAPORE POST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE POST has no effect on the direction of NIKKON HOLDINGS i.e., NIKKON HOLDINGS and SINGAPORE POST go up and down completely randomly.
Pair Corralation between NIKKON HOLDINGS and SINGAPORE POST
Assuming the 90 days horizon NIKKON HOLDINGS TD is expected to generate 0.47 times more return on investment than SINGAPORE POST. However, NIKKON HOLDINGS TD is 2.13 times less risky than SINGAPORE POST. It trades about 0.09 of its potential returns per unit of risk. SINGAPORE POST is currently generating about 0.04 per unit of risk. If you would invest 1,180 in NIKKON HOLDINGS TD on October 26, 2024 and sell it today you would earn a total of 50.00 from holding NIKKON HOLDINGS TD or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.5% |
| Values | Daily Returns |
NIKKON HOLDINGS TD vs. SINGAPORE POST
Performance |
| Timeline |
| NIKKON HOLDINGS TD |
| SINGAPORE POST |
NIKKON HOLDINGS and SINGAPORE POST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIKKON HOLDINGS and SINGAPORE POST
The main advantage of trading using opposite NIKKON HOLDINGS and SINGAPORE POST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIKKON HOLDINGS position performs unexpectedly, SINGAPORE POST 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 SINGAPORE POST will offset losses from the drop in SINGAPORE POST's long position.| NIKKON HOLDINGS vs. GREENX METALS LTD | NIKKON HOLDINGS vs. Coffee Holding Co | NIKKON HOLDINGS vs. GALENA MINING LTD | NIKKON HOLDINGS vs. TYSON FOODS A |
| SINGAPORE POST vs. NIKKON HOLDINGS TD | SINGAPORE POST vs. SENKO GROUP HOLDINGS | SINGAPORE POST vs. NTG Nordic Transport | SINGAPORE POST vs. SUPER GROUP LTD |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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