Correlation Between NIKKON HOLDINGS and ALLFUNDS GROUP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both NIKKON HOLDINGS and ALLFUNDS GROUP 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 NIKKON HOLDINGS and ALLFUNDS GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIKKON HOLDINGS TD and ALLFUNDS GROUP EO 0025, you can compare the effects of market volatilities on NIKKON HOLDINGS and ALLFUNDS GROUP 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 NIKKON HOLDINGS with a short position of ALLFUNDS GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIKKON HOLDINGS and ALLFUNDS GROUP.

Diversification Opportunities for NIKKON HOLDINGS and ALLFUNDS GROUP

0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between NIKKON and ALLFUNDS is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding NIKKON HOLDINGS TD and ALLFUNDS GROUP EO 0025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLFUNDS GROUP EO and NIKKON HOLDINGS 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 NIKKON HOLDINGS TD are associated (or correlated) with ALLFUNDS GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLFUNDS GROUP EO has no effect on the direction of NIKKON HOLDINGS i.e., NIKKON HOLDINGS and ALLFUNDS GROUP go up and down completely randomly.

Pair Corralation between NIKKON HOLDINGS and ALLFUNDS GROUP

Assuming the 90 days horizon NIKKON HOLDINGS TD is expected to generate 0.74 times more return on investment than ALLFUNDS GROUP. However, NIKKON HOLDINGS TD is 1.34 times less risky than ALLFUNDS GROUP. It trades about 0.12 of its potential returns per unit of risk. ALLFUNDS GROUP EO 0025 is currently generating about -0.13 per unit of risk. If you would invest  1,140  in NIKKON HOLDINGS TD on October 11, 2024 and sell it today you would earn a total of  60.00  from holding NIKKON HOLDINGS TD or generate 5.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

NIKKON HOLDINGS TD  vs.  ALLFUNDS GROUP EO 0025

 Performance 
       Timeline  
NIKKON HOLDINGS TD 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in NIKKON HOLDINGS TD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, NIKKON HOLDINGS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
ALLFUNDS GROUP EO 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ALLFUNDS GROUP EO 0025 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ALLFUNDS GROUP is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

NIKKON HOLDINGS and ALLFUNDS GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NIKKON HOLDINGS and ALLFUNDS GROUP

The main advantage of trading using opposite NIKKON HOLDINGS and ALLFUNDS GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIKKON HOLDINGS position performs unexpectedly, ALLFUNDS GROUP 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 ALLFUNDS GROUP will offset losses from the drop in ALLFUNDS GROUP's long position.
The idea behind NIKKON HOLDINGS TD and ALLFUNDS GROUP EO 0025 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.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments