Correlation Between NH Foods and AWILCO DRILLING
Can any of the company-specific risk be diversified away by investing in both NH Foods and AWILCO DRILLING 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 NH Foods and AWILCO DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods and AWILCO DRILLING PLC, you can compare the effects of market volatilities on NH Foods and AWILCO DRILLING 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 NH Foods with a short position of AWILCO DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and AWILCO DRILLING.
Diversification Opportunities for NH Foods and AWILCO DRILLING
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between NI6 and AWILCO is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods and AWILCO DRILLING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AWILCO DRILLING PLC and NH 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 NH Foods are associated (or correlated) with AWILCO DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AWILCO DRILLING PLC has no effect on the direction of NH Foods i.e., NH Foods and AWILCO DRILLING go up and down completely randomly.
Pair Corralation between NH Foods and AWILCO DRILLING
Assuming the 90 days horizon NH Foods is expected to generate 17.56 times less return on investment than AWILCO DRILLING. But when comparing it to its historical volatility, NH Foods is 9.55 times less risky than AWILCO DRILLING. It trades about 0.02 of its potential returns per unit of risk. AWILCO DRILLING PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 306.00 in AWILCO DRILLING PLC on November 7, 2024 and sell it today you would lose (110.00) from holding AWILCO DRILLING PLC or give up 35.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods vs. AWILCO DRILLING PLC
Performance |
| Timeline |
| NH Foods |
| AWILCO DRILLING PLC |
NH Foods and AWILCO DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and AWILCO DRILLING
The main advantage of trading using opposite NH Foods and AWILCO DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, AWILCO DRILLING 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 AWILCO DRILLING will offset losses from the drop in AWILCO DRILLING's long position.| NH Foods vs. T Mobile | NH Foods vs. Air Lease | NH Foods vs. ecotel communication ag | NH Foods vs. MAVEN WIRELESS SWEDEN |
| AWILCO DRILLING vs. SIVERS SEMICONDUCTORS AB | AWILCO DRILLING vs. NorAm Drilling AS | AWILCO DRILLING vs. Volkswagen AG | AWILCO DRILLING vs. Darden Restaurants |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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