Correlation Between Sea and NH Foods
Can any of the company-specific risk be diversified away by investing in both Sea 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 Sea and NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea and NH Foods Ltd, you can compare the effects of market volatilities on Sea 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 Sea with a short position of NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and NH Foods.
Diversification Opportunities for Sea and NH Foods
Pay attention - limited upside
The 3 months correlation between Sea and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sea and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods and Sea 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 Sea 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 Sea i.e., Sea and NH Foods go up and down completely randomly.
Pair Corralation between Sea and NH Foods
If you would invest 9,599 in Sea on August 30, 2024 and sell it today you would earn a total of 1,972 from holding Sea or generate 20.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sea vs. NH Foods Ltd
Performance |
| Timeline |
| Sea |
| NH Foods |
Sea and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and NH Foods
The main advantage of trading using opposite Sea and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea 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.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
| NH Foods vs. Darling Ingredients | NH Foods vs. Paranovus Entertainment Technology | NH Foods vs. ABIVAX Socit Anonyme | NH Foods vs. Pinnacle Sherman Multi Strategy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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