Correlation Between Joint Stock and NIP Group

Can any of the company-specific risk be diversified away by investing in both Joint Stock and NIP 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 Joint Stock and NIP Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Joint Stock and NIP Group American, you can compare the effects of market volatilities on Joint Stock and NIP 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 Joint Stock with a short position of NIP Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Stock and NIP Group.

Diversification Opportunities for Joint Stock and NIP Group

-0.54

Correlation Coefficient

Joint Stock  NIP Group

Excellent diversification

The 3 months correlation between Joint and NIP is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Joint Stock and NIP Group American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIP Group American and Joint Stock 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 Joint Stock are associated (or correlated) with NIP Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIP Group American has no effect on the direction of Joint Stock i.e., Joint Stock and NIP Group go up and down completely randomly.

Pair Corralation between Joint Stock and NIP Group

Given the investment horizon of 90 days Joint Stock is expected to generate 0.21 times more return on investment than NIP Group. However, Joint Stock is 4.78 times less risky than NIP Group. It trades about -0.01 of its potential returns per unit of risk. NIP Group American is currently generating about -0.14 per unit of risk. If you would invest  9,870  in Joint Stock on December 20, 2024 and sell it today you would lose (239.00) from holding Joint Stock or give up 2.42% of portfolio value over 90 days.

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

Joint Stock  vs.  NIP Group American

Joint Stock

Risk-Adjusted Performance

Very Weak

Over the last 90 days Joint Stock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Joint Stock is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

NIP Group American

Risk-Adjusted Performance

Very Weak

Over the last 90 days NIP Group American has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Joint Stock and NIP Group

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

The idea behind Joint Stock and NIP Group American 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.