Correlation Between Linamar and NSK
Can any of the company-specific risk be diversified away by investing in both Linamar and NSK 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 Linamar and NSK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Linamar and NSK, you can compare the effects of market volatilities on Linamar and NSK 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 Linamar with a short position of NSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linamar and NSK.
Diversification Opportunities for Linamar and NSK
Pay attention - limited upside
The 3 months correlation between Linamar and NSK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Linamar and NSK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSK and Linamar 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 Linamar are associated (or correlated) with NSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSK has no effect on the direction of Linamar i.e., Linamar and NSK go up and down completely randomly.
Pair Corralation between Linamar and NSK
If you would invest 600.00 in NSK on August 24, 2024 and sell it today you would earn a total of 0.00 from holding NSK or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Linamar vs. NSK
Performance |
| Timeline |
| Linamar |
| NSK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Linamar and NSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linamar and NSK
The main advantage of trading using opposite Linamar and NSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linamar position performs unexpectedly, NSK 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 NSK will offset losses from the drop in NSK's long position.| Linamar vs. FitLife Brands, Common | Linamar vs. HUMANA INC | Linamar vs. SCOR PK | Linamar vs. Aquagold International |
| NSK vs. Linamar | NSK vs. Superior Industries International | NSK vs. Gogoro Equity Warrant | NSK vs. Foresight Autonomous 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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