Correlation Between Nufarm Finance and British Amer
Can any of the company-specific risk be diversified away by investing in both Nufarm Finance and British Amer 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 Nufarm Finance and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nufarm Finance NZ and Bailador Technology Invest, you can compare the effects of market volatilities on Nufarm Finance and British Amer 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 Nufarm Finance with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nufarm Finance and British Amer.
Diversification Opportunities for Nufarm Finance and British Amer
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nufarm and British is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Nufarm Finance NZ and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology and Nufarm Finance 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 Nufarm Finance NZ are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of Nufarm Finance i.e., Nufarm Finance and British Amer go up and down completely randomly.
Pair Corralation between Nufarm Finance and British Amer
Assuming the 90 days trading horizon Nufarm Finance NZ is expected to under-perform the British Amer. But the stock apears to be less risky and, when comparing its historical volatility, Nufarm Finance NZ is 1.38 times less risky than British Amer. The stock trades about -0.05 of its potential returns per unit of risk. The Bailador Technology Invest is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 120.00 in Bailador Technology Invest on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Bailador Technology Invest or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nufarm Finance NZ vs. Bailador Technology Invest
Performance |
| Timeline |
| Nufarm Finance NZ |
| Bailador Technology |
Nufarm Finance and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nufarm Finance and British Amer
The main advantage of trading using opposite Nufarm Finance and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nufarm Finance position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Nufarm Finance vs. Aneka Tambang Tbk | Nufarm Finance vs. BHP Group Limited | Nufarm Finance vs. Ecofibre | Nufarm Finance vs. iShares Global Healthcare |
| British Amer vs. Insurance Australia Group | British Amer vs. Health and Plant | British Amer vs. Perpetual Credit Income | British Amer vs. Event Hospitality and |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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