Correlation Between NIGHTINGALE HEALTH and BRF SA

Can any of the company-specific risk be diversified away by investing in both NIGHTINGALE HEALTH and BRF SA 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 NIGHTINGALE HEALTH and BRF SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NIGHTINGALE HEALTH EO and BRF SA, you can compare the effects of market volatilities on NIGHTINGALE HEALTH and BRF SA 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 NIGHTINGALE HEALTH with a short position of BRF SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGHTINGALE HEALTH and BRF SA.

Diversification Opportunities for NIGHTINGALE HEALTH and BRF SA

0.0

Correlation Coefficient

NIGHTINGALE HEALTH  BRF SA

Pay attention - limited upside

The 3 months correlation between NIGHTINGALE and BRF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NIGHTINGALE HEALTH EO and BRF SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRF SA and NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH EO are associated (or correlated) with BRF SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRF SA has no effect on the direction of NIGHTINGALE HEALTH i.e., NIGHTINGALE HEALTH and BRF SA go up and down completely randomly.

Pair Corralation between NIGHTINGALE HEALTH and BRF SA

If you would invest  0.00  in BRF SA on October 24, 2024 and sell it today you would earn a total of  0.00  from holding BRF SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

NIGHTINGALE HEALTH EO  vs.  BRF SA

NIGHTINGALE HEALTH

Risk-Adjusted Performance

0 of 100

Very Weak

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

BRF SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with NIGHTINGALE HEALTH and BRF SA

The main advantage of trading using opposite NIGHTINGALE HEALTH and BRF SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGHTINGALE HEALTH position performs unexpectedly, BRF SA 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 BRF SA will offset losses from the drop in BRF SA's long position.

The idea behind NIGHTINGALE HEALTH EO and BRF SA 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.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.