Correlation Between Nomura Holdings and Fleury SA
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings and Fleury SA 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 Fleury SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomura Holdings and Fleury SA, you can compare the effects of market volatilities on Nomura Holdings and Fleury SA 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 Fleury SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and Fleury SA.
Diversification Opportunities for Nomura Holdings and Fleury SA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nomura and Fleury is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings and Fleury SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fleury SA 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 are associated (or correlated) with Fleury SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fleury SA has no effect on the direction of Nomura Holdings i.e., Nomura Holdings and Fleury SA go up and down completely randomly.
Pair Corralation between Nomura Holdings and Fleury SA
Assuming the 90 days trading horizon Nomura Holdings is expected to generate 1.11 times more return on investment than Fleury SA. However, Nomura Holdings is 1.11 times more volatile than Fleury SA. It trades about 0.35 of its potential returns per unit of risk. Fleury SA is currently generating about -0.17 per unit of risk. If you would invest 2,997 in Nomura Holdings on August 28, 2024 and sell it today you would earn a total of 533.00 from holding Nomura Holdings or generate 17.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomura Holdings vs. Fleury SA
Performance |
| Timeline |
| Nomura Holdings |
| Fleury SA |
Nomura Holdings and Fleury SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomura Holdings and Fleury SA
The main advantage of trading using opposite Nomura Holdings and Fleury SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings position performs unexpectedly, Fleury SA 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 Fleury SA will offset losses from the drop in Fleury SA's long position.| Nomura Holdings vs. Apartment Investment and | Nomura Holdings vs. Spotify Technology SA | Nomura Holdings vs. Fidelity National Information | Nomura Holdings vs. BIONTECH SE DRN |
| Fleury SA vs. Engie Brasil Energia | Fleury SA vs. WEG SA | Fleury SA vs. Ambev SA | Fleury SA vs. M Dias Branco |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |