Correlation Between OFFICE DEPOT and Nomura Holdings
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and Nomura Holdings 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 OFFICE DEPOT and Nomura Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Nomura Holdings, you can compare the effects of market volatilities on OFFICE DEPOT and Nomura Holdings 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 OFFICE DEPOT with a short position of Nomura Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Nomura Holdings.
Diversification Opportunities for OFFICE DEPOT and Nomura Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Nomura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Nomura Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura Holdings and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with Nomura Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Holdings has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and Nomura Holdings go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Nomura Holdings
If you would invest 364.00 in Nomura Holdings on October 9, 2024 and sell it today you would earn a total of 190.00 from holding Nomura Holdings or generate 52.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Nomura Holdings
Performance |
| Timeline |
| OFFICE DEPOT |
| Nomura Holdings |
OFFICE DEPOT and Nomura Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Nomura Holdings
The main advantage of trading using opposite OFFICE DEPOT and Nomura Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, Nomura Holdings 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 Nomura Holdings will offset losses from the drop in Nomura Holdings' long position.| OFFICE DEPOT vs. Nishi Nippon Railroad Co | OFFICE DEPOT vs. Penta Ocean Construction Co | OFFICE DEPOT vs. Gaztransport Technigaz SA | OFFICE DEPOT vs. Texas Roadhouse |
| Nomura Holdings vs. URBAN OUTFITTERS | Nomura Holdings vs. Air Lease | Nomura Holdings vs. PARKEN Sport Entertainment | Nomura Holdings vs. Flutter Entertainment PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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