Correlation Between Nomura Holdings and AcuityAds Holdings
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings and AcuityAds Holdings 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 AcuityAds Holdings 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 AcuityAds Holdings, you can compare the effects of market volatilities on Nomura Holdings and AcuityAds Holdings 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 AcuityAds Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and AcuityAds Holdings.
Diversification Opportunities for Nomura Holdings and AcuityAds Holdings
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nomura and AcuityAds is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR and AcuityAds Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AcuityAds Holdings 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 AcuityAds Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AcuityAds Holdings has no effect on the direction of Nomura Holdings i.e., Nomura Holdings and AcuityAds Holdings go up and down completely randomly.
Pair Corralation between Nomura Holdings and AcuityAds Holdings
If you would invest 579.00 in Nomura Holdings ADR on September 2, 2024 and sell it today you would earn a total of 29.00 from holding Nomura Holdings ADR or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Nomura Holdings ADR vs. AcuityAds Holdings
Performance |
| Timeline |
| Nomura Holdings ADR |
| AcuityAds Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nomura Holdings and AcuityAds Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and AcuityAds Holdings
The main advantage of trading using opposite Nomura Holdings and AcuityAds Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings position performs unexpectedly, AcuityAds Holdings 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 AcuityAds Holdings will offset losses from the drop in AcuityAds Holdings' 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 |
| AcuityAds Holdings vs. Stepstone Group | AcuityAds Holdings vs. Bill Com Holdings | AcuityAds Holdings vs. Rumble Inc | AcuityAds Holdings vs. Nomura Holdings ADR |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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