Correlation Between Nubia Brand and Zumiez
Can any of the company-specific risk be diversified away by investing in both Nubia Brand and Zumiez 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 Nubia Brand and Zumiez into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nubia Brand International and Zumiez Inc, you can compare the effects of market volatilities on Nubia Brand and Zumiez 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 Nubia Brand with a short position of Zumiez. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nubia Brand and Zumiez.
Diversification Opportunities for Nubia Brand and Zumiez
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nubia and Zumiez is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nubia Brand International and Zumiez Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zumiez Inc and Nubia Brand 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 Nubia Brand International are associated (or correlated) with Zumiez. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zumiez Inc has no effect on the direction of Nubia Brand i.e., Nubia Brand and Zumiez go up and down completely randomly.
Pair Corralation between Nubia Brand and Zumiez
If you would invest 1,080 in Nubia Brand International on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Nubia Brand International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Nubia Brand International vs. Zumiez Inc
Performance |
| Timeline |
| Nubia Brand International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Zumiez Inc |
Nubia Brand and Zumiez Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nubia Brand and Zumiez
The main advantage of trading using opposite Nubia Brand and Zumiez positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nubia Brand position performs unexpectedly, Zumiez 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 Zumiez will offset losses from the drop in Zumiez's long position.| Nubia Brand vs. Ihuman Inc | Nubia Brand vs. Ryanair Holdings PLC | Nubia Brand vs. Bright Scholar Education | Nubia Brand vs. Air Lease |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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