Correlation Between Dice Sport and Nozha International

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Can any of the company-specific risk be diversified away by investing in both Dice Sport and Nozha International 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 Dice Sport and Nozha International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dice Sport Casual and Nozha International Hospital, you can compare the effects of market volatilities on Dice Sport and Nozha International 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 Dice Sport with a short position of Nozha International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dice Sport and Nozha International.

Diversification Opportunities for Dice Sport and Nozha International

0.87
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Dice and Nozha is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dice Sport Casual and Nozha International Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nozha International and Dice Sport 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 Dice Sport Casual are associated (or correlated) with Nozha International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nozha International has no effect on the direction of Dice Sport i.e., Dice Sport and Nozha International go up and down completely randomly.

Pair Corralation between Dice Sport and Nozha International

Assuming the 90 days trading horizon Dice Sport Casual is expected to generate 0.98 times more return on investment than Nozha International. However, Dice Sport Casual is 1.02 times less risky than Nozha International. It trades about 0.28 of its potential returns per unit of risk. Nozha International Hospital is currently generating about 0.05 per unit of risk. If you would invest  158.00  in Dice Sport Casual on October 20, 2024 and sell it today you would earn a total of  102.00  from holding Dice Sport Casual or generate 64.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Dice Sport Casual  vs.  Nozha International Hospital

 Performance 
       Timeline  
Dice Sport Casual 

Risk-Adjusted Performance

21 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Dice Sport Casual are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Dice Sport reported solid returns over the last few months and may actually be approaching a breakup point.
Nozha International 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Nozha International Hospital are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Nozha International reported solid returns over the last few months and may actually be approaching a breakup point.

Dice Sport and Nozha International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dice Sport and Nozha International

The main advantage of trading using opposite Dice Sport and Nozha International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dice Sport position performs unexpectedly, Nozha International 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 Nozha International will offset losses from the drop in Nozha International's long position.
The idea behind Dice Sport Casual and Nozha International Hospital 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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