Correlation Between Nomura Holdings and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings and Canlan Ice 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 Nomura Holdings and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomura Holdings ADR and Canlan Ice Sports, you can compare the effects of market volatilities on Nomura Holdings and Canlan Ice 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 Nomura Holdings with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and Canlan Ice.
Diversification Opportunities for Nomura Holdings and Canlan Ice
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nomura and Canlan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and Nomura Holdings 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 Nomura Holdings ADR are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Nomura Holdings i.e., Nomura Holdings and Canlan Ice go up and down completely randomly.
Pair Corralation between Nomura Holdings and Canlan Ice
If you would invest 517.00 in Nomura Holdings ADR on August 29, 2024 and sell it today you would earn a total of 80.00 from holding Nomura Holdings ADR or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nomura Holdings ADR vs. Canlan Ice Sports
Performance |
| Timeline |
| Nomura Holdings ADR |
| Canlan Ice Sports |
Nomura Holdings and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and Canlan Ice
The main advantage of trading using opposite Nomura Holdings and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
| Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. Carnival Plc ADS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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