Correlation Between NBI Bearings and Miquel Y
Can any of the company-specific risk be diversified away by investing in both NBI Bearings and Miquel Y 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 NBI Bearings and Miquel Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NBI Bearings Europe and Miquel y Costas, you can compare the effects of market volatilities on NBI Bearings and Miquel Y 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 NBI Bearings with a short position of Miquel Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBI Bearings and Miquel Y.
Diversification Opportunities for NBI Bearings and Miquel Y
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between NBI and Miquel is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding NBI Bearings Europe and Miquel y Costas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miquel y Costas and NBI Bearings 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 NBI Bearings Europe are associated (or correlated) with Miquel Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miquel y Costas has no effect on the direction of NBI Bearings i.e., NBI Bearings and Miquel Y go up and down completely randomly.
Pair Corralation between NBI Bearings and Miquel Y
Assuming the 90 days trading horizon NBI Bearings Europe is expected to under-perform the Miquel Y. In addition to that, NBI Bearings is 1.16 times more volatile than Miquel y Costas. It trades about -0.12 of its total potential returns per unit of risk. Miquel y Costas is currently generating about 0.07 per unit of volatility. If you would invest 1,265 in Miquel y Costas on December 28, 2024 and sell it today you would earn a total of 55.00 from holding Miquel y Costas or generate 4.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
NBI Bearings Europe vs. Miquel y Costas
Performance |
Timeline |
NBI Bearings Europe |
Miquel y Costas |
NBI Bearings and Miquel Y Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NBI Bearings and Miquel Y
The main advantage of trading using opposite NBI Bearings and Miquel Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBI Bearings position performs unexpectedly, Miquel Y 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 Miquel Y will offset losses from the drop in Miquel Y's long position.NBI Bearings vs. Azaria Rental SOCIMI | NBI Bearings vs. All Iron Re | NBI Bearings vs. Labiana Health SA | NBI Bearings vs. Home Capital Rentals |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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