Correlation Between Nisshinbo Holdings and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Nisshinbo Holdings and Uber Technologies 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 Nisshinbo Holdings and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nisshinbo Holdings and Uber Technologies, you can compare the effects of market volatilities on Nisshinbo Holdings and Uber Technologies 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 Nisshinbo Holdings with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nisshinbo Holdings and Uber Technologies.
Diversification Opportunities for Nisshinbo Holdings and Uber Technologies
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nisshinbo and Uber is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nisshinbo Holdings and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Nisshinbo Holdings 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 Nisshinbo Holdings are associated (or correlated) with Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Nisshinbo Holdings i.e., Nisshinbo Holdings and Uber Technologies go up and down completely randomly.
Pair Corralation between Nisshinbo Holdings and Uber Technologies
Assuming the 90 days trading horizon Nisshinbo Holdings is expected to under-perform the Uber Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Nisshinbo Holdings is 1.58 times less risky than Uber Technologies. The stock trades about -0.1 of its potential returns per unit of risk. The Uber Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,329 in Uber Technologies on September 21, 2024 and sell it today you would lose (474.00) from holding Uber Technologies or give up 7.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.08% |
| Values | Daily Returns |
Nisshinbo Holdings vs. Uber Technologies
Performance |
| Timeline |
| Nisshinbo Holdings |
| Uber Technologies |
Nisshinbo Holdings and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nisshinbo Holdings and Uber Technologies
The main advantage of trading using opposite Nisshinbo Holdings and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nisshinbo Holdings position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Nisshinbo Holdings vs. PKSHA TECHNOLOGY INC | Nisshinbo Holdings vs. Axcelis Technologies | Nisshinbo Holdings vs. PennantPark Investment | Nisshinbo Holdings vs. Uber Technologies |
| Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc |
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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