Correlation Between Papaya Growth and NH Foods
Can any of the company-specific risk be diversified away by investing in both Papaya Growth and NH Foods 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 Papaya Growth and NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Papaya Growth Opportunity and NH Foods Ltd, you can compare the effects of market volatilities on Papaya Growth and NH Foods 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 Papaya Growth with a short position of NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Papaya Growth and NH Foods.
Diversification Opportunities for Papaya Growth and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Papaya and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Papaya Growth Opportunity and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods and Papaya Growth 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 Papaya Growth Opportunity are associated (or correlated) with NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of Papaya Growth i.e., Papaya Growth and NH Foods go up and down completely randomly.
Pair Corralation between Papaya Growth and NH Foods
Assuming the 90 days horizon Papaya Growth is expected to generate 1.1 times less return on investment than NH Foods. In addition to that, Papaya Growth is 3.14 times more volatile than NH Foods Ltd. It trades about 0.02 of its total potential returns per unit of risk. NH Foods Ltd is currently generating about 0.07 per unit of volatility. If you would invest 1,509 in NH Foods Ltd on August 31, 2024 and sell it today you would earn a total of 191.00 from holding NH Foods Ltd or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Papaya Growth Opportunity vs. NH Foods Ltd
Performance |
| Timeline |
| Papaya Growth Opportunity |
| NH Foods |
Papaya Growth and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Papaya Growth and NH Foods
The main advantage of trading using opposite Papaya Growth and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Papaya Growth position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| Papaya Growth vs. Dominos Pizza | Papaya Growth vs. GEN Restaurant Group, | Papaya Growth vs. Texas Roadhouse | Papaya Growth vs. GameStop Corp |
| NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment | NH Foods vs. Artisan Consumer Goods | NH Foods vs. General Mills |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |