Correlation Between NH Foods and Sea
Can any of the company-specific risk be diversified away by investing in both NH Foods and Sea 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 Sea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Sea, you can compare the effects of market volatilities on NH Foods and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Sea.
Diversification Opportunities for NH Foods and Sea
Pay attention - limited upside
The 3 months correlation between NIPMY and Sea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Ltd are associated (or correlated) with Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of NH Foods i.e., NH Foods and Sea go up and down completely randomly.
Pair Corralation between NH Foods and Sea
If you would invest 9,599 in Sea on August 30, 2024 and sell it today you would earn a total of 1,972 from holding Sea or generate 20.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
NH Foods Ltd vs. Sea
Performance |
| Timeline |
| NH Foods |
| Sea |
NH Foods and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Sea
The main advantage of trading using opposite NH Foods and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| NH Foods vs. Darling Ingredients | NH Foods vs. Paranovus Entertainment Technology | NH Foods vs. ABIVAX Socit Anonyme | NH Foods vs. Pinnacle Sherman Multi Strategy |
| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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