Correlation Between BorgWarner and NH Foods
Can any of the company-specific risk be diversified away by investing in both BorgWarner and NH Foods 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 BorgWarner and NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BorgWarner and NH Foods Ltd, you can compare the effects of market volatilities on BorgWarner and NH Foods 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 BorgWarner with a short position of NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of BorgWarner and NH Foods.
Diversification Opportunities for BorgWarner and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BorgWarner and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BorgWarner and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods and BorgWarner 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 BorgWarner are associated (or correlated) with NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of BorgWarner i.e., BorgWarner and NH Foods go up and down completely randomly.
Pair Corralation between BorgWarner and NH Foods
If you would invest 3,309 in BorgWarner on August 31, 2024 and sell it today you would earn a total of 119.00 from holding BorgWarner or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BorgWarner vs. NH Foods Ltd
Performance |
| Timeline |
| BorgWarner |
| NH Foods |
BorgWarner and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BorgWarner and NH Foods
The main advantage of trading using opposite BorgWarner and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BorgWarner position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| BorgWarner vs. Lear Corporation | BorgWarner vs. Autoliv | BorgWarner vs. Fox Factory Holding | BorgWarner vs. LKQ Corporation |
| NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment | NH Foods vs. Artisan Consumer Goods | NH Foods vs. Avi Ltd ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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