Correlation Between Stellantis and Nissan
Can any of the company-specific risk be diversified away by investing in both Stellantis and Nissan 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 Stellantis and Nissan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellantis NV and Nissan Motor Co, you can compare the effects of market volatilities on Stellantis and Nissan 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 Stellantis with a short position of Nissan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellantis and Nissan.
Diversification Opportunities for Stellantis and Nissan
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stellantis and Nissan is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Stellantis NV and Nissan Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nissan Motor and Stellantis 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 Stellantis NV are associated (or correlated) with Nissan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nissan Motor has no effect on the direction of Stellantis i.e., Stellantis and Nissan go up and down completely randomly.
Pair Corralation between Stellantis and Nissan
If you would invest 1,305 in Stellantis NV on November 1, 2024 and sell it today you would earn a total of 47.00 from holding Stellantis NV or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Stellantis NV vs. Nissan Motor Co
Performance |
| Timeline |
| Stellantis NV |
| Nissan Motor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Stellantis and Nissan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellantis and Nissan
The main advantage of trading using opposite Stellantis and Nissan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellantis position performs unexpectedly, Nissan 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 Nissan will offset losses from the drop in Nissan's long position.| Stellantis vs. Porsche Automobile Holding | Stellantis vs. Toyota Motor | Stellantis vs. Honda Motor Co | Stellantis vs. General Motors |
| Nissan vs. Honda Motor Co | Nissan vs. Toyota Motor | Nissan vs. Hyundai Motor Co | Nissan vs. Mazda Motor Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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