Correlation Between Nissin Foods and Chemtrade Logistics
Can any of the company-specific risk be diversified away by investing in both Nissin Foods and Chemtrade Logistics 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 Nissin Foods and Chemtrade Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nissin Foods Holdings and Chemtrade Logistics Income, you can compare the effects of market volatilities on Nissin Foods and Chemtrade Logistics 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 Nissin Foods with a short position of Chemtrade Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nissin Foods and Chemtrade Logistics.
Diversification Opportunities for Nissin Foods and Chemtrade Logistics
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nissin and Chemtrade is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Nissin Foods Holdings and Chemtrade Logistics Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemtrade Logistics and Nissin Foods 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 Nissin Foods Holdings are associated (or correlated) with Chemtrade Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemtrade Logistics has no effect on the direction of Nissin Foods i.e., Nissin Foods and Chemtrade Logistics go up and down completely randomly.
Pair Corralation between Nissin Foods and Chemtrade Logistics
If you would invest 785.00 in Chemtrade Logistics Income on September 1, 2024 and sell it today you would earn a total of 59.00 from holding Chemtrade Logistics Income or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nissin Foods Holdings vs. Chemtrade Logistics Income
Performance |
| Timeline |
| Nissin Foods Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chemtrade Logistics |
Nissin Foods and Chemtrade Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nissin Foods and Chemtrade Logistics
The main advantage of trading using opposite Nissin Foods and Chemtrade Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nissin Foods position performs unexpectedly, Chemtrade Logistics 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 Chemtrade Logistics will offset losses from the drop in Chemtrade Logistics' long position.| Nissin Foods vs. Campbell Soup | Nissin Foods vs. McCormick Company Incorporated | Nissin Foods vs. Hormel Foods | Nissin Foods vs. General Mills |
| Chemtrade Logistics vs. Western Digital | Chemtrade Logistics vs. Space Communication | Chemtrade Logistics vs. ServiceNow | Chemtrade Logistics vs. BCE 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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