Correlation Between SIEM OFFSHORE and NIKKON HOLDINGS
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE and NIKKON 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 SIEM OFFSHORE and NIKKON HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and NIKKON HOLDINGS TD, you can compare the effects of market volatilities on SIEM OFFSHORE and NIKKON 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 SIEM OFFSHORE with a short position of NIKKON HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and NIKKON HOLDINGS.
Diversification Opportunities for SIEM OFFSHORE and NIKKON HOLDINGS
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between SIEM and NIKKON is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and NIKKON HOLDINGS TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIKKON HOLDINGS TD and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with NIKKON HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKON HOLDINGS TD has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and NIKKON HOLDINGS go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and NIKKON HOLDINGS
Assuming the 90 days trading horizon SIEM OFFSHORE is expected to generate 10.01 times less return on investment than NIKKON HOLDINGS. In addition to that, SIEM OFFSHORE is 1.79 times more volatile than NIKKON HOLDINGS TD. It trades about 0.0 of its total potential returns per unit of risk. NIKKON HOLDINGS TD is currently generating about 0.08 per unit of volatility. If you would invest 930.00 in NIKKON HOLDINGS TD on September 14, 2024 and sell it today you would earn a total of 320.00 from holding NIKKON HOLDINGS TD or generate 34.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. NIKKON HOLDINGS TD
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| NIKKON HOLDINGS TD |
SIEM OFFSHORE and NIKKON HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and NIKKON HOLDINGS
The main advantage of trading using opposite SIEM OFFSHORE and NIKKON HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE position performs unexpectedly, NIKKON 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 NIKKON HOLDINGS will offset losses from the drop in NIKKON HOLDINGS's long position.| SIEM OFFSHORE vs. TC Energy | SIEM OFFSHORE vs. Pembina Pipeline Corp | SIEM OFFSHORE vs. Superior Plus Corp | SIEM OFFSHORE vs. SIVERS SEMICONDUCTORS AB |
| NIKKON HOLDINGS vs. Dalata Hotel Group | NIKKON HOLDINGS vs. Meli Hotels International | NIKKON HOLDINGS vs. NH HOTEL GROUP | NIKKON HOLDINGS vs. Boyd Gaming |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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