Correlation Between Nestle SA and Amincor
Can any of the company-specific risk be diversified away by investing in both Nestle SA and Amincor 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 Nestle SA and Amincor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nestle SA and Amincor, you can compare the effects of market volatilities on Nestle SA and Amincor 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 Nestle SA with a short position of Amincor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nestle SA and Amincor.
Diversification Opportunities for Nestle SA and Amincor
Excellent diversification
The 3 months correlation between Nestle and Amincor is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Nestle SA and Amincor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amincor and Nestle SA 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 Nestle SA are associated (or correlated) with Amincor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amincor has no effect on the direction of Nestle SA i.e., Nestle SA and Amincor go up and down completely randomly.
Pair Corralation between Nestle SA and Amincor
If you would invest 14.00 in Amincor on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Amincor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nestle SA vs. Amincor
Performance |
| Timeline |
| Nestle SA |
| Amincor |
Nestle SA and Amincor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nestle SA and Amincor
The main advantage of trading using opposite Nestle SA and Amincor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nestle SA position performs unexpectedly, Amincor 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 Amincor will offset losses from the drop in Amincor's long position.| Nestle SA vs. General Mills | Nestle SA vs. Kellanova | Nestle SA vs. Campbell Soup | Nestle SA vs. Kraft Heinz Co |
| Amincor vs. BAB Inc | Amincor vs. FitLife Brands, Common | Amincor vs. The A2 Milk | Amincor vs. Artisan Consumer Goods |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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