Correlation Between Equinix and Nomura Holdings
Can any of the company-specific risk be diversified away by investing in both Equinix and Nomura Holdings 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 Equinix and Nomura Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinix and Nomura Holdings ADR, you can compare the effects of market volatilities on Equinix and Nomura Holdings 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 Equinix with a short position of Nomura Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and Nomura Holdings.
Diversification Opportunities for Equinix and Nomura Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Equinix and Nomura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and Nomura Holdings ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura Holdings ADR and Equinix 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 Equinix are associated (or correlated) with Nomura Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Holdings ADR has no effect on the direction of Equinix i.e., Equinix and Nomura Holdings go up and down completely randomly.
Pair Corralation between Equinix and Nomura Holdings
Given the investment horizon of 90 days Equinix is expected to generate 2.36 times less return on investment than Nomura Holdings. But when comparing it to its historical volatility, Equinix is 1.41 times less risky than Nomura Holdings. It trades about 0.05 of its potential returns per unit of risk. Nomura Holdings ADR is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Nomura Holdings ADR on August 26, 2024 and sell it today you would earn a total of 193.00 from holding Nomura Holdings ADR or generate 46.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinix vs. Nomura Holdings ADR
Performance |
| Timeline |
| Equinix |
| Nomura Holdings ADR |
Equinix and Nomura Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinix and Nomura Holdings
The main advantage of trading using opposite Equinix and Nomura Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix position performs unexpectedly, Nomura Holdings 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 Nomura Holdings will offset losses from the drop in Nomura Holdings' long position.| Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges |