Correlation Between Nacon Sa and Fill Up

Can any of the company-specific risk be diversified away by investing in both Nacon Sa and Fill Up 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 Nacon Sa and Fill Up into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nacon Sa and Fill Up Media, you can compare the effects of market volatilities on Nacon Sa and Fill Up 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 Nacon Sa with a short position of Fill Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nacon Sa and Fill Up.

Diversification Opportunities for Nacon Sa and Fill Up

0.1

Correlation Coefficient

Nacon Sa  Fill Up

Average diversification

The 3 months correlation between Nacon and Fill is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nacon Sa and Fill Up Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fill Up Media and Nacon Sa 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 Nacon Sa are associated (or correlated) with Fill Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fill Up Media has no effect on the direction of Nacon Sa i.e., Nacon Sa and Fill Up go up and down completely randomly.

Pair Corralation between Nacon Sa and Fill Up

Assuming the 90 days trading horizon Nacon Sa is expected to generate 7.1 times more return on investment than Fill Up. However, Nacon Sa is 7.1 times more volatile than Fill Up Media. It trades about 0.21 of its potential returns per unit of risk. Fill Up Media is currently generating about -0.09 per unit of risk. If you would invest  53.00  in Nacon Sa on October 21, 2024 and sell it today you would earn a total of  14.00  from holding Nacon Sa or generate 26.42% return on investment over 90 days.

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

Nacon Sa  vs.  Fill Up Media

Nacon Sa

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nacon Sa are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Nacon Sa reported solid returns over the last few months and may actually be approaching a breakup point.

Fill Up Media

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fill Up Media are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fill Up reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nacon Sa and Fill Up

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

The idea behind Nacon Sa and Fill Up Media 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.