Correlation Between Nissin Foods and Holmen AB
Can any of the company-specific risk be diversified away by investing in both Nissin Foods and Holmen AB 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 Holmen AB 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 Holmen AB ADR, you can compare the effects of market volatilities on Nissin Foods and Holmen AB 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 Holmen AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nissin Foods and Holmen AB.
Diversification Opportunities for Nissin Foods and Holmen AB
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nissin and Holmen is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Nissin Foods Holdings and Holmen AB ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holmen AB ADR 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 Holmen AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holmen AB ADR has no effect on the direction of Nissin Foods i.e., Nissin Foods and Holmen AB go up and down completely randomly.
Pair Corralation between Nissin Foods and Holmen AB
If you would invest 2,125 in Holmen AB ADR on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Holmen AB ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Nissin Foods Holdings vs. Holmen AB ADR
Performance |
| Timeline |
| Nissin Foods Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Holmen AB ADR |
Nissin Foods and Holmen AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nissin Foods and Holmen AB
The main advantage of trading using opposite Nissin Foods and Holmen AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nissin Foods position performs unexpectedly, Holmen AB 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 Holmen AB will offset losses from the drop in Holmen AB's long position.| Nissin Foods vs. Campbell Soup | Nissin Foods vs. McCormick Company Incorporated | Nissin Foods vs. Hormel Foods | Nissin Foods vs. General Mills |
| Holmen AB vs. Mondi PLC ADR | Holmen AB vs. Canfor Pulp Products | Holmen AB vs. Nine Dragons Paper | Holmen AB vs. Sylvamo 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |