Correlation Between Nautilus and Shimano
Can any of the company-specific risk be diversified away by investing in both Nautilus and Shimano 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 Nautilus and Shimano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nautilus Group and Shimano, you can compare the effects of market volatilities on Nautilus and Shimano 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 Nautilus with a short position of Shimano. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nautilus and Shimano.
Diversification Opportunities for Nautilus and Shimano
Poor diversification
The 3 months correlation between Nautilus and Shimano is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Nautilus Group and Shimano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shimano and Nautilus 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 Nautilus Group are associated (or correlated) with Shimano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shimano has no effect on the direction of Nautilus i.e., Nautilus and Shimano go up and down completely randomly.
Pair Corralation between Nautilus and Shimano
If you would invest 106.00 in Nautilus Group on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Nautilus Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nautilus Group vs. Shimano
Performance |
| Timeline |
| Nautilus Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shimano |
Nautilus and Shimano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nautilus and Shimano
The main advantage of trading using opposite Nautilus and Shimano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nautilus position performs unexpectedly, Shimano 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 Shimano will offset losses from the drop in Shimano's long position.| Nautilus vs. Xponential Fitness | Nautilus vs. Life Time Group | Nautilus vs. Mattel Inc | Nautilus vs. Bowlero Corp |
| Shimano vs. Yamaha Corp DRC | Shimano vs. BANDAI NAMCO Holdings | Shimano vs. BANDAI NAMCO Holdings | Shimano vs. Nikon 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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