Correlation Between Impala Platinum and Nishi Nippon
Can any of the company-specific risk be diversified away by investing in both Impala Platinum and Nishi Nippon 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 Impala Platinum and Nishi Nippon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impala Platinum Holdings and Nishi Nippon Railroad Co, you can compare the effects of market volatilities on Impala Platinum and Nishi Nippon 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 Impala Platinum with a short position of Nishi Nippon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impala Platinum and Nishi Nippon.
Diversification Opportunities for Impala Platinum and Nishi Nippon
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Impala and Nishi is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Impala Platinum Holdings and Nishi Nippon Railroad Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nishi Nippon Railroad and Impala Platinum 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 Impala Platinum Holdings are associated (or correlated) with Nishi Nippon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nishi Nippon Railroad has no effect on the direction of Impala Platinum i.e., Impala Platinum and Nishi Nippon go up and down completely randomly.
Pair Corralation between Impala Platinum and Nishi Nippon
Assuming the 90 days trading horizon Impala Platinum Holdings is expected to under-perform the Nishi Nippon. In addition to that, Impala Platinum is 2.68 times more volatile than Nishi Nippon Railroad Co. It trades about -0.05 of its total potential returns per unit of risk. Nishi Nippon Railroad Co is currently generating about 0.2 per unit of volatility. If you would invest 1,310 in Nishi Nippon Railroad Co on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Nishi Nippon Railroad Co or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Impala Platinum Holdings vs. Nishi Nippon Railroad Co
Performance |
| Timeline |
| Impala Platinum Holdings |
| Nishi Nippon Railroad |
Impala Platinum and Nishi Nippon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impala Platinum and Nishi Nippon
The main advantage of trading using opposite Impala Platinum and Nishi Nippon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impala Platinum position performs unexpectedly, Nishi Nippon 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 Nishi Nippon will offset losses from the drop in Nishi Nippon's long position.| Impala Platinum vs. BHP Group Limited | Impala Platinum vs. Rio Tinto Group | Impala Platinum vs. Rio Tinto Group | Impala Platinum vs. Vale SA |
| Nishi Nippon vs. Union Pacific | Nishi Nippon vs. Superior Plus Corp | Nishi Nippon vs. NMI Holdings | Nishi Nippon vs. Origin Agritech |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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