Correlation Between SUN ART and Nisshin Seifun
Can any of the company-specific risk be diversified away by investing in both SUN ART and Nisshin Seifun 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 SUN ART and Nisshin Seifun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUN ART RETAIL and Nisshin Seifun Group, you can compare the effects of market volatilities on SUN ART and Nisshin Seifun 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 SUN ART with a short position of Nisshin Seifun. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN ART and Nisshin Seifun.
Diversification Opportunities for SUN ART and Nisshin Seifun
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between SUN and Nisshin is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SUN ART RETAIL and Nisshin Seifun Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisshin Seifun Group and SUN ART 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 SUN ART RETAIL are associated (or correlated) with Nisshin Seifun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisshin Seifun Group has no effect on the direction of SUN ART i.e., SUN ART and Nisshin Seifun go up and down completely randomly.
Pair Corralation between SUN ART and Nisshin Seifun
Assuming the 90 days trading horizon SUN ART RETAIL is expected to generate 2.9 times more return on investment than Nisshin Seifun. However, SUN ART is 2.9 times more volatile than Nisshin Seifun Group. It trades about 0.31 of its potential returns per unit of risk. Nisshin Seifun Group is currently generating about 0.01 per unit of risk. If you would invest 25.00 in SUN ART RETAIL on September 24, 2024 and sell it today you would earn a total of 6.00 from holding SUN ART RETAIL or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUN ART RETAIL vs. Nisshin Seifun Group
Performance |
| Timeline |
| SUN ART RETAIL |
| Nisshin Seifun Group |
SUN ART and Nisshin Seifun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUN ART and Nisshin Seifun
The main advantage of trading using opposite SUN ART and Nisshin Seifun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUN ART position performs unexpectedly, Nisshin Seifun 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 Nisshin Seifun will offset losses from the drop in Nisshin Seifun's long position.The idea behind SUN ART RETAIL and Nisshin Seifun Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nisshin Seifun vs. Mowi ASA | Nisshin Seifun vs. LEROY SEAFOOD GRUNSPADR | Nisshin Seifun vs. Lery Seafood Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |