Correlation Between Nintendo and STILLFRONT GRP
Can any of the company-specific risk be diversified away by investing in both Nintendo and STILLFRONT GRP 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 Nintendo and STILLFRONT GRP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nintendo Co and STILLFRONT GRP AB, you can compare the effects of market volatilities on Nintendo and STILLFRONT GRP 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 Nintendo with a short position of STILLFRONT GRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nintendo and STILLFRONT GRP.
Diversification Opportunities for Nintendo and STILLFRONT GRP
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nintendo and STILLFRONT is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nintendo Co and STILLFRONT GRP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STILLFRONT GRP AB and Nintendo 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 Nintendo Co are associated (or correlated) with STILLFRONT GRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STILLFRONT GRP AB has no effect on the direction of Nintendo i.e., Nintendo and STILLFRONT GRP go up and down completely randomly.
Pair Corralation between Nintendo and STILLFRONT GRP
Assuming the 90 days trading horizon Nintendo Co is expected to generate 0.77 times more return on investment than STILLFRONT GRP. However, Nintendo Co is 1.3 times less risky than STILLFRONT GRP. It trades about 0.05 of its potential returns per unit of risk. STILLFRONT GRP AB is currently generating about -0.06 per unit of risk. If you would invest 976.00 in Nintendo Co on September 12, 2024 and sell it today you would earn a total of 404.00 from holding Nintendo Co or generate 41.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Nintendo Co vs. STILLFRONT GRP AB
Performance |
| Timeline |
| Nintendo |
| STILLFRONT GRP AB |
Nintendo and STILLFRONT GRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nintendo and STILLFRONT GRP
The main advantage of trading using opposite Nintendo and STILLFRONT GRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nintendo position performs unexpectedly, STILLFRONT GRP 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 STILLFRONT GRP will offset losses from the drop in STILLFRONT GRP's long position.| Nintendo vs. BRIT AMER TOBACCO | Nintendo vs. Solstad Offshore ASA | Nintendo vs. Bausch Health Companies | Nintendo vs. JAPAN TOBACCO UNSPADR12 |
| STILLFRONT GRP vs. Perseus Mining Limited | STILLFRONT GRP vs. ADRIATIC METALS LS 013355 | STILLFRONT GRP vs. DATANG INTL POW | STILLFRONT GRP vs. PUBLIC STORAGE PRFO |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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