Correlation Between NGK Insulators and American Commerce
Can any of the company-specific risk be diversified away by investing in both NGK Insulators and American Commerce 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 NGK Insulators and American Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGK Insulators and American Commerce Solutions, you can compare the effects of market volatilities on NGK Insulators and American Commerce 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 NGK Insulators with a short position of American Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGK Insulators and American Commerce.
Diversification Opportunities for NGK Insulators and American Commerce
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NGK and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NGK Insulators and American Commerce Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Commerce and NGK Insulators 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 NGK Insulators are associated (or correlated) with American Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Commerce has no effect on the direction of NGK Insulators i.e., NGK Insulators and American Commerce go up and down completely randomly.
Pair Corralation between NGK Insulators and American Commerce
If you would invest 1,190 in NGK Insulators on September 12, 2024 and sell it today you would earn a total of 160.00 from holding NGK Insulators or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 64.55% |
| Values | Daily Returns |
NGK Insulators vs. American Commerce Solutions
Performance |
| Timeline |
| NGK Insulators |
| American Commerce |
NGK Insulators and American Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGK Insulators and American Commerce
The main advantage of trading using opposite NGK Insulators and American Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGK Insulators position performs unexpectedly, American Commerce 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 American Commerce will offset losses from the drop in American Commerce's long position.| NGK Insulators vs. NI Holdings | NGK Insulators vs. Pekin Life Insurance | NGK Insulators vs. Palomar Holdings | NGK Insulators vs. Siriuspoint |
| American Commerce vs. Aumann AG | American Commerce vs. Alfa Laval AB | American Commerce vs. Arista Power | American Commerce vs. Atlas Copco AB |
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..
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |