Correlation Between NVIDIA and Kerry Logistics
Can any of the company-specific risk be diversified away by investing in both NVIDIA and Kerry Logistics 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 NVIDIA and Kerry Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA and Kerry Logistics Network, you can compare the effects of market volatilities on NVIDIA and Kerry Logistics 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 NVIDIA with a short position of Kerry Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA and Kerry Logistics.
Diversification Opportunities for NVIDIA and Kerry Logistics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NVIDIA and Kerry is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA and Kerry Logistics Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerry Logistics Network and NVIDIA 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 NVIDIA are associated (or correlated) with Kerry Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerry Logistics Network has no effect on the direction of NVIDIA i.e., NVIDIA and Kerry Logistics go up and down completely randomly.
Pair Corralation between NVIDIA and Kerry Logistics
Given the investment horizon of 90 days NVIDIA is expected to generate 0.71 times more return on investment than Kerry Logistics. However, NVIDIA is 1.41 times less risky than Kerry Logistics. It trades about 0.09 of its potential returns per unit of risk. Kerry Logistics Network is currently generating about -0.03 per unit of risk. If you would invest 8,595 in NVIDIA on September 1, 2024 and sell it today you would earn a total of 5,230 from holding NVIDIA or generate 60.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.26% |
| Values | Daily Returns |
NVIDIA vs. Kerry Logistics Network
Performance |
| Timeline |
| NVIDIA |
| Kerry Logistics Network |
NVIDIA and Kerry Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA and Kerry Logistics
The main advantage of trading using opposite NVIDIA and Kerry Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA position performs unexpectedly, Kerry Logistics 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 Kerry Logistics will offset losses from the drop in Kerry Logistics' long position.| NVIDIA vs. Intel | NVIDIA vs. Taiwan Semiconductor Manufacturing | NVIDIA vs. Marvell Technology Group | NVIDIA vs. Micron Technology |
| Kerry Logistics vs. Legacy Education | Kerry Logistics vs. Apple Inc | Kerry Logistics vs. NVIDIA | Kerry Logistics vs. Microsoft |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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