Correlation Between CIMG and Nocera
Can any of the company-specific risk be diversified away by investing in both CIMG 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 CIMG and Nocera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIMG Inc and Nocera Inc, you can compare the effects of market volatilities on CIMG 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 CIMG with a short position of Nocera. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMG and Nocera.
Diversification Opportunities for CIMG and Nocera
Very good diversification
The 3 months correlation between CIMG and Nocera is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CIMG Inc and Nocera Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nocera Inc and CIMG 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 CIMG Inc 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 CIMG i.e., CIMG and Nocera go up and down completely randomly.
Pair Corralation between CIMG and Nocera
Considering the 90-day investment horizon CIMG Inc is expected to under-perform the Nocera. In addition to that, CIMG is 1.62 times more volatile than Nocera Inc. It trades about -0.11 of its total potential returns per unit of risk. Nocera Inc is currently generating about -0.12 per unit of volatility. If you would invest 134.00 in Nocera Inc on August 28, 2024 and sell it today you would lose (27.00) from holding Nocera Inc or give up 20.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMG Inc vs. Nocera Inc
Performance |
| Timeline |
| CIMG Inc |
| Nocera Inc |
CIMG and Nocera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMG and Nocera
The main advantage of trading using opposite CIMG and Nocera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMG 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.| CIMG vs. RLX Technology | CIMG vs. First Ship Lease | CIMG vs. Willamette Valley Vineyards | CIMG vs. Keurig Dr Pepper |
| Nocera vs. Natures Sunshine Products | Nocera vs. Laird Superfood | Nocera vs. Nomad Foods | Nocera vs. Better Choice |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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