Correlation Between China Marine and Nocera
Can any of the company-specific risk be diversified away by investing in both China Marine and Nocera 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 China Marine and Nocera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Marine Food and Nocera Inc, you can compare the effects of market volatilities on China Marine and Nocera 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 China Marine with a short position of Nocera. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Marine and Nocera.
Diversification Opportunities for China Marine and Nocera
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Nocera is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding China Marine Food and Nocera Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nocera Inc and China Marine 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 China Marine Food are associated (or correlated) with Nocera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nocera Inc has no effect on the direction of China Marine i.e., China Marine and Nocera go up and down completely randomly.
Pair Corralation between China Marine and Nocera
If you would invest 120.00 in Nocera Inc on August 24, 2024 and sell it today you would lose (21.00) from holding Nocera Inc or give up 17.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
China Marine Food vs. Nocera Inc
Performance |
| Timeline |
| China Marine Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nocera Inc |
China Marine and Nocera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Marine and Nocera
The main advantage of trading using opposite China Marine and Nocera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Marine position performs unexpectedly, Nocera 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 Nocera will offset losses from the drop in Nocera's long position.| China Marine vs. General Mills | China Marine vs. Nestle SA | China Marine vs. Kellanova | China Marine vs. Campbell Soup |
| Nocera vs. Natures Sunshine Products | Nocera vs. Laird Superfood | Nocera vs. Nomad Foods | Nocera vs. Premium Brands Holdings |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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