Correlation Between NSK and Gentherm
Can any of the company-specific risk be diversified away by investing in both NSK and Gentherm 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 NSK and Gentherm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NSK and Gentherm, you can compare the effects of market volatilities on NSK and Gentherm 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 NSK with a short position of Gentherm. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSK and Gentherm.
Diversification Opportunities for NSK and Gentherm
Pay attention - limited upside
The 3 months correlation between NSK and Gentherm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NSK and Gentherm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentherm and NSK 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 NSK are associated (or correlated) with Gentherm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentherm has no effect on the direction of NSK i.e., NSK and Gentherm go up and down completely randomly.
Pair Corralation between NSK and Gentherm
If you would invest 600.00 in NSK on August 27, 2024 and sell it today you would earn a total of 0.00 from holding NSK or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.44% |
| Values | Daily Returns |
NSK vs. Gentherm
Performance |
| Timeline |
| NSK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gentherm |
NSK and Gentherm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSK and Gentherm
The main advantage of trading using opposite NSK and Gentherm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSK position performs unexpectedly, Gentherm 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 Gentherm will offset losses from the drop in Gentherm's long position.| NSK vs. Linamar | NSK vs. Superior Industries International | NSK vs. Gogoro Equity Warrant | NSK vs. Foresight Autonomous Holdings |
| Gentherm vs. Monro Muffler Brake | Gentherm vs. Motorcar Parts of | Gentherm vs. Standard Motor Products | Gentherm vs. Stoneridge |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |