Correlation Between Opal Balance and Nissan
Can any of the company-specific risk be diversified away by investing in both Opal Balance and Nissan 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 Opal Balance and Nissan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opal Balance and Nissan, you can compare the effects of market volatilities on Opal Balance and Nissan 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 Opal Balance with a short position of Nissan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opal Balance and Nissan.
Diversification Opportunities for Opal Balance and Nissan
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Opal and Nissan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Opal Balance and Nissan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nissan and Opal Balance 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 Opal Balance are associated (or correlated) with Nissan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nissan has no effect on the direction of Opal Balance i.e., Opal Balance and Nissan go up and down completely randomly.
Pair Corralation between Opal Balance and Nissan
Assuming the 90 days trading horizon Opal Balance is expected to generate 1.47 times less return on investment than Nissan. But when comparing it to its historical volatility, Opal Balance is 1.07 times less risky than Nissan. It trades about 0.3 of its potential returns per unit of risk. Nissan is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 143,900 in Nissan on August 29, 2024 and sell it today you would earn a total of 21,600 from holding Nissan or generate 15.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Opal Balance vs. Nissan
Performance |
| Timeline |
| Opal Balance |
| Nissan |
Opal Balance and Nissan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opal Balance and Nissan
The main advantage of trading using opposite Opal Balance and Nissan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opal Balance position performs unexpectedly, Nissan 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 Nissan will offset losses from the drop in Nissan's long position.| Opal Balance vs. Nawi Brothers Group | Opal Balance vs. EN Shoham Business | Opal Balance vs. Peninsula Group | Opal Balance vs. Shikun Binui |
| Nissan vs. Adgar Investments and | Nissan vs. Millennium Food Tech LP | Nissan vs. Willy Food | Nissan vs. Harel Insurance Investments |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |