Correlation Between Nucletron Electronic and MAGNA INTL
Can any of the company-specific risk be diversified away by investing in both Nucletron Electronic and MAGNA INTL 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 Nucletron Electronic and MAGNA INTL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nucletron Electronic Aktiengesellschaft and MAGNA INTL, you can compare the effects of market volatilities on Nucletron Electronic and MAGNA INTL 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 Nucletron Electronic with a short position of MAGNA INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nucletron Electronic and MAGNA INTL.
Diversification Opportunities for Nucletron Electronic and MAGNA INTL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nucletron and MAGNA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nucletron Electronic Aktienges and MAGNA INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNA INTL and Nucletron Electronic 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 Nucletron Electronic Aktiengesellschaft are associated (or correlated) with MAGNA INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNA INTL has no effect on the direction of Nucletron Electronic i.e., Nucletron Electronic and MAGNA INTL go up and down completely randomly.
Pair Corralation between Nucletron Electronic and MAGNA INTL
Assuming the 90 days horizon Nucletron Electronic Aktiengesellschaft is expected to generate 0.16 times more return on investment than MAGNA INTL. However, Nucletron Electronic Aktiengesellschaft is 6.31 times less risky than MAGNA INTL. It trades about 0.06 of its potential returns per unit of risk. MAGNA INTL is currently generating about -0.01 per unit of risk. If you would invest 695.00 in Nucletron Electronic Aktiengesellschaft on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Nucletron Electronic Aktiengesellschaft or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nucletron Electronic Aktienges vs. MAGNA INTL
Performance |
| Timeline |
| Nucletron Electronic |
| MAGNA INTL |
Nucletron Electronic and MAGNA INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nucletron Electronic and MAGNA INTL
The main advantage of trading using opposite Nucletron Electronic and MAGNA INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nucletron Electronic position performs unexpectedly, MAGNA INTL 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 MAGNA INTL will offset losses from the drop in MAGNA INTL's long position.| Nucletron Electronic vs. Hon Hai Precision | Nucletron Electronic vs. Samsung SDI Co | Nucletron Electronic vs. Murata Manufacturing Co | Nucletron Electronic vs. Mitsubishi Electric |
| MAGNA INTL vs. Retail Estates NV | MAGNA INTL vs. VARIOUS EATERIES LS | MAGNA INTL vs. Penta Ocean Construction Co | MAGNA INTL vs. Hitachi Construction Machinery |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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