Correlation Between Naas Technology and Indigo Books
Can any of the company-specific risk be diversified away by investing in both Naas Technology and Indigo Books 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 Indigo Books 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 Indigo Books Music, you can compare the effects of market volatilities on Naas Technology and Indigo Books 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 Indigo Books. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naas Technology and Indigo Books.
Diversification Opportunities for Naas Technology and Indigo Books
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Naas and Indigo is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Naas Technology ADR and Indigo Books Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indigo Books Music 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 Indigo Books. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indigo Books Music has no effect on the direction of Naas Technology i.e., Naas Technology and Indigo Books go up and down completely randomly.
Pair Corralation between Naas Technology and Indigo Books
If you would invest 298.00 in Naas Technology ADR on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Naas Technology ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Naas Technology ADR vs. Indigo Books Music
Performance |
| Timeline |
| Naas Technology ADR |
| Indigo Books Music |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Naas Technology and Indigo Books Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naas Technology and Indigo Books
The main advantage of trading using opposite Naas Technology and Indigo Books positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naas Technology position performs unexpectedly, Indigo Books 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 Indigo Books will offset losses from the drop in Indigo Books' long position.| Naas Technology vs. Leslies | Naas Technology vs. Sally Beauty Holdings | Naas Technology vs. ODP Corp | Naas Technology vs. 1 800 FLOWERSCOM |
| Indigo Books vs. National Vision Holdings | Indigo Books vs. Naas Technology ADR | Indigo Books vs. Sportsmans | Indigo Books vs. Bath Body Works |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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