Correlation Between Nomura Holdings and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings and SCOR PK 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 SCOR PK 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 SCOR PK, you can compare the effects of market volatilities on Nomura Holdings and SCOR PK 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 SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and SCOR PK.
Diversification Opportunities for Nomura Holdings and SCOR PK
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nomura and SCOR is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK 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 SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Nomura Holdings i.e., Nomura Holdings and SCOR PK go up and down completely randomly.
Pair Corralation between Nomura Holdings and SCOR PK
Considering the 90-day investment horizon Nomura Holdings is expected to generate 3.5 times less return on investment than SCOR PK. But when comparing it to its historical volatility, Nomura Holdings ADR is 1.42 times less risky than SCOR PK. It trades about 0.05 of its potential returns per unit of risk. SCOR PK is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 209.00 in SCOR PK on August 24, 2024 and sell it today you would earn a total of 45.00 from holding SCOR PK or generate 21.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Nomura Holdings ADR vs. SCOR PK
Performance |
| Timeline |
| Nomura Holdings ADR |
| SCOR PK |
Nomura Holdings and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and SCOR PK
The main advantage of trading using opposite Nomura Holdings and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK'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 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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