Correlation Between Hyrican Informationssyst and NISSIN FOODS

Can any of the company-specific risk be diversified away by investing in both Hyrican Informationssyst and NISSIN FOODS 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 Hyrican Informationssyst and NISSIN FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hyrican Informationssysteme Aktiengesellschaft and NISSIN FOODS HLDGS, you can compare the effects of market volatilities on Hyrican Informationssyst and NISSIN FOODS 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 Hyrican Informationssyst with a short position of NISSIN FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyrican Informationssyst and NISSIN FOODS.

Diversification Opportunities for Hyrican Informationssyst and NISSIN FOODS

-0.37

Correlation Coefficient

Hyrican Informationssyst  NISSIN FOODS

Very good diversification

The 3 months correlation between Hyrican and NISSIN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hyrican Informationssysteme Ak and NISSIN FOODS HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISSIN FOODS HLDGS and Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft are associated (or correlated) with NISSIN FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISSIN FOODS HLDGS has no effect on the direction of Hyrican Informationssyst i.e., Hyrican Informationssyst and NISSIN FOODS go up and down completely randomly.

Pair Corralation between Hyrican Informationssyst and NISSIN FOODS

Assuming the 90 days horizon Hyrican Informationssysteme Aktiengesellschaft is expected to generate 1.51 times more return on investment than NISSIN FOODS. However, Hyrican Informationssyst is 1.51 times more volatile than NISSIN FOODS HLDGS. It trades about 0.05 of its potential returns per unit of risk. NISSIN FOODS HLDGS is currently generating about -0.05 per unit of risk. If you would invest  427.00  in Hyrican Informationssysteme Aktiengesellschaft on September 13, 2024 and sell it today you would earn a total of  103.00  from holding Hyrican Informationssysteme Aktiengesellschaft or generate 24.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hyrican Informationssysteme Ak  vs.  NISSIN FOODS HLDGS

Hyrican Informationssyst

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hyrican Informationssysteme Aktiengesellschaft are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Hyrican Informationssyst is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

NISSIN FOODS HLDGS

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in NISSIN FOODS HLDGS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, NISSIN FOODS is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Hyrican Informationssyst and NISSIN FOODS

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

The idea behind Hyrican Informationssysteme Aktiengesellschaft and NISSIN FOODS HLDGS 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.