Correlation Between Marti Technologies and NH Foods
Can any of the company-specific risk be diversified away by investing in both Marti Technologies and NH Foods 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 Marti Technologies and NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marti Technologies and NH Foods Ltd, you can compare the effects of market volatilities on Marti Technologies and NH Foods 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 Marti Technologies with a short position of NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marti Technologies and NH Foods.
Diversification Opportunities for Marti Technologies and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Marti and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Marti Technologies and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods and Marti Technologies 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 Marti Technologies are associated (or correlated) with NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of Marti Technologies i.e., Marti Technologies and NH Foods go up and down completely randomly.
Pair Corralation between Marti Technologies and NH Foods
Considering the 90-day investment horizon Marti Technologies is expected to generate 15.36 times more return on investment than NH Foods. However, Marti Technologies is 15.36 times more volatile than NH Foods Ltd. It trades about 0.11 of its potential returns per unit of risk. NH Foods Ltd is currently generating about 0.09 per unit of risk. If you would invest 172.00 in Marti Technologies on September 2, 2024 and sell it today you would earn a total of 170.00 from holding Marti Technologies or generate 98.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marti Technologies vs. NH Foods Ltd
Performance |
| Timeline |
| Marti Technologies |
| NH Foods |
Marti Technologies and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marti Technologies and NH Foods
The main advantage of trading using opposite Marti Technologies and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marti Technologies position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| Marti Technologies vs. Keurig Dr Pepper | Marti Technologies vs. Ambev SA ADR | Marti Technologies vs. Molson Coors Brewing | Marti Technologies vs. PennantPark Floating Rate |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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