Correlation Between Nufarm Finance and Srj Technologies
Can any of the company-specific risk be diversified away by investing in both Nufarm Finance and Srj 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 Nufarm Finance and Srj Technologies 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 Srj Technologies Group, you can compare the effects of market volatilities on Nufarm Finance and Srj 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 Nufarm Finance with a short position of Srj Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nufarm Finance and Srj Technologies.
Diversification Opportunities for Nufarm Finance and Srj Technologies
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nufarm and Srj is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nufarm Finance NZ and Srj Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srj Technologies 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 Srj Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srj Technologies has no effect on the direction of Nufarm Finance i.e., Nufarm Finance and Srj Technologies go up and down completely randomly.
Pair Corralation between Nufarm Finance and Srj Technologies
Assuming the 90 days trading horizon Nufarm Finance NZ is expected to generate 0.22 times more return on investment than Srj Technologies. However, Nufarm Finance NZ is 4.57 times less risky than Srj Technologies. It trades about 0.08 of its potential returns per unit of risk. Srj Technologies Group is currently generating about -0.13 per unit of risk. If you would invest 8,733 in Nufarm Finance NZ on August 28, 2024 and sell it today you would earn a total of 407.00 from holding Nufarm Finance NZ or generate 4.66% 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. Srj Technologies Group
Performance |
| Timeline |
| Nufarm Finance NZ |
| Srj Technologies |
Nufarm Finance and Srj Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nufarm Finance and Srj Technologies
The main advantage of trading using opposite Nufarm Finance and Srj Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nufarm Finance position performs unexpectedly, Srj 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 Srj Technologies will offset losses from the drop in Srj Technologies' long position.| Nufarm Finance vs. Westpac Banking | Nufarm Finance vs. Ecofibre | Nufarm Finance vs. iShares Global Healthcare | Nufarm Finance vs. Ridley |
| Srj Technologies vs. Westpac Banking | Srj Technologies vs. ABACUS STORAGE KING | Srj Technologies vs. Odyssey Energy | Srj Technologies vs. Hotel Property Investments |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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