Correlation Between Supercom and NH Foods
Can any of the company-specific risk be diversified away by investing in both Supercom 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 Supercom and NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercom and NH Foods Ltd, you can compare the effects of market volatilities on Supercom 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 Supercom with a short position of NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercom and NH Foods.
Diversification Opportunities for Supercom and NH Foods
Pay attention - limited upside
The 3 months correlation between Supercom and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Supercom and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods and Supercom 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 Supercom 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 Supercom i.e., Supercom and NH Foods go up and down completely randomly.
Pair Corralation between Supercom and NH Foods
If you would invest 1,700 in NH Foods Ltd on January 13, 2025 and sell it today you would earn a total of 0.00 from holding NH Foods Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercom vs. NH Foods Ltd
Performance |
| Timeline |
| Supercom |
| NH Foods |
Supercom and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercom and NH Foods
The main advantage of trading using opposite Supercom and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercom 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.| Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI Co | Supercom vs. Iveda Solutions |
| NH Foods vs. The Planting Hope | NH Foods vs. Else Nutrition Holdings | NH Foods vs. Steakholder Foods | NH Foods vs. Laird Superfood |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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