Correlation Between PACIFIC and Nomura Holdings
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By analyzing existing cross correlation between PACIFIC GAS AND and Nomura Holdings ADR, you can compare the effects of market volatilities on PACIFIC and Nomura 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 PACIFIC with a short position of Nomura Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and Nomura Holdings.
Diversification Opportunities for PACIFIC and Nomura Holdings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between PACIFIC and Nomura is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS AND and Nomura Holdings ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomura Holdings ADR and PACIFIC 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 PACIFIC GAS AND are associated (or correlated) with Nomura Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomura Holdings ADR has no effect on the direction of PACIFIC i.e., PACIFIC and Nomura Holdings go up and down completely randomly.
Pair Corralation between PACIFIC and Nomura Holdings
Assuming the 90 days trading horizon PACIFIC GAS AND is expected to under-perform the Nomura Holdings. But the bond apears to be less risky and, when comparing its historical volatility, PACIFIC GAS AND is 1.98 times less risky than Nomura Holdings. The bond trades about -0.25 of its potential returns per unit of risk. The Nomura Holdings ADR is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 577.00 in Nomura Holdings ADR on October 24, 2024 and sell it today you would earn a total of 35.00 from holding Nomura Holdings ADR or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
PACIFIC GAS AND vs. Nomura Holdings ADR
Performance |
| Timeline |
| PACIFIC GAS AND |
| Nomura Holdings ADR |
PACIFIC and Nomura Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC and Nomura Holdings
The main advantage of trading using opposite PACIFIC and Nomura Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC position performs unexpectedly, Nomura 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 Nomura Holdings will offset losses from the drop in Nomura Holdings' long position.The idea behind PACIFIC GAS AND and Nomura Holdings ADR 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.| Nomura Holdings vs. Perella Weinberg Partners | Nomura Holdings vs. Oppenheimer Holdings | Nomura Holdings vs. Stifel Financial Corp | Nomura Holdings vs. Piper Sandler Companies |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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