Correlation Between NCC Group and SupplyMe Capital
Can any of the company-specific risk be diversified away by investing in both NCC Group and SupplyMe Capital 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 NCC Group and SupplyMe Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NCC Group plc and SupplyMe Capital PLC, you can compare the effects of market volatilities on NCC Group and SupplyMe Capital 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 NCC Group with a short position of SupplyMe Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCC Group and SupplyMe Capital.
Diversification Opportunities for NCC Group and SupplyMe Capital
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NCC and SupplyMe is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding NCC Group plc and SupplyMe Capital PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SupplyMe Capital PLC and NCC Group 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 NCC Group plc are associated (or correlated) with SupplyMe Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SupplyMe Capital PLC has no effect on the direction of NCC Group i.e., NCC Group and SupplyMe Capital go up and down completely randomly.
Pair Corralation between NCC Group and SupplyMe Capital
Assuming the 90 days trading horizon NCC Group plc is expected to under-perform the SupplyMe Capital. But the stock apears to be less risky and, when comparing its historical volatility, NCC Group plc is 5.01 times less risky than SupplyMe Capital. The stock trades about -0.09 of its potential returns per unit of risk. The SupplyMe Capital PLC is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.30 in SupplyMe Capital PLC on September 20, 2024 and sell it today you would earn a total of 0.07 from holding SupplyMe Capital PLC or generate 23.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NCC Group plc vs. SupplyMe Capital PLC
Performance |
| Timeline |
| NCC Group plc |
| SupplyMe Capital PLC |
NCC Group and SupplyMe Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCC Group and SupplyMe Capital
The main advantage of trading using opposite NCC Group and SupplyMe Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCC Group position performs unexpectedly, SupplyMe Capital 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 SupplyMe Capital will offset losses from the drop in SupplyMe Capital's long position.| NCC Group vs. SupplyMe Capital PLC | NCC Group vs. Lloyds Banking Group | NCC Group vs. Premier African Minerals | NCC Group vs. SANTANDER UK 8 |
| SupplyMe Capital vs. Premier Foods PLC | SupplyMe Capital vs. Ebro Foods | SupplyMe Capital vs. Roebuck Food Group | SupplyMe Capital vs. Sealed Air Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Transaction History View history of all your transactions and understand their impact on performance |