Correlation Between Naas Technology and Caseys General
Can any of the company-specific risk be diversified away by investing in both Naas Technology and Caseys General 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 Naas Technology and Caseys General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naas Technology ADR and Caseys General Stores, you can compare the effects of market volatilities on Naas Technology and Caseys General 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 Naas Technology with a short position of Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naas Technology and Caseys General.
Diversification Opportunities for Naas Technology and Caseys General
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naas and Caseys is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Naas Technology ADR and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores and Naas Technology 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 Naas Technology ADR are associated (or correlated) with Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Naas Technology i.e., Naas Technology and Caseys General go up and down completely randomly.
Pair Corralation between Naas Technology and Caseys General
Given the investment horizon of 90 days Naas Technology ADR is expected to under-perform the Caseys General. In addition to that, Naas Technology is 5.73 times more volatile than Caseys General Stores. It trades about -0.03 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.08 per unit of volatility. If you would invest 24,171 in Caseys General Stores on September 4, 2024 and sell it today you would earn a total of 17,937 from holding Caseys General Stores or generate 74.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naas Technology ADR vs. Caseys General Stores
Performance |
| Timeline |
| Naas Technology ADR |
| Caseys General Stores |
Naas Technology and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naas Technology and Caseys General
The main advantage of trading using opposite Naas Technology and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naas Technology position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Naas Technology vs. Leslies | Naas Technology vs. Sally Beauty Holdings | Naas Technology vs. ODP Corp | Naas Technology vs. 1 800 FLOWERSCOM |
| Caseys General vs. Leslies | Caseys General vs. Sally Beauty Holdings | Caseys General vs. ODP Corp | Caseys General vs. 1 800 FLOWERSCOM |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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