Correlation Between Rockwell Automation and Nidec
Can any of the company-specific risk be diversified away by investing in both Rockwell Automation and Nidec 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 Rockwell Automation and Nidec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rockwell Automation and Nidec, you can compare the effects of market volatilities on Rockwell Automation and Nidec 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 Rockwell Automation with a short position of Nidec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rockwell Automation and Nidec.
Diversification Opportunities for Rockwell Automation and Nidec
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rockwell and Nidec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rockwell Automation and Nidec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nidec and Rockwell Automation 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 Rockwell Automation are associated (or correlated) with Nidec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nidec has no effect on the direction of Rockwell Automation i.e., Rockwell Automation and Nidec go up and down completely randomly.
Pair Corralation between Rockwell Automation and Nidec
If you would invest 28,296 in Rockwell Automation on November 27, 2024 and sell it today you would earn a total of 967.00 from holding Rockwell Automation or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rockwell Automation vs. Nidec
Performance |
| Timeline |
| Rockwell Automation |
| Nidec |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Rockwell Automation and Nidec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rockwell Automation and Nidec
The main advantage of trading using opposite Rockwell Automation and Nidec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rockwell Automation position performs unexpectedly, Nidec 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 Nidec will offset losses from the drop in Nidec's long position.| Rockwell Automation vs. Dover | Rockwell Automation vs. Illinois Tool Works | Rockwell Automation vs. Ingersoll Rand | Rockwell Automation vs. Eaton PLC |
| Nidec vs. Daifuku Co | Nidec vs. Eaton PLC | Nidec vs. Yokogawa Electric Corp | Nidec vs. Vestas Wind Systems |
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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