Correlation Between NIP Group and Joint Stock
Can any of the company-specific risk be diversified away by investing in both NIP Group and Joint Stock 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 NIP Group and Joint Stock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIP Group American and Joint Stock, you can compare the effects of market volatilities on NIP Group and Joint Stock 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 NIP Group with a short position of Joint Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIP Group and Joint Stock.
Diversification Opportunities for NIP Group and Joint Stock
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between NIP and Joint is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding NIP Group American and Joint Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Stock and NIP Group 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 NIP Group American are associated (or correlated) with Joint Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Stock has no effect on the direction of NIP Group i.e., NIP Group and Joint Stock go up and down completely randomly.
Pair Corralation between NIP Group and Joint Stock
Given the investment horizon of 90 days NIP Group American is expected to generate 0.9 times more return on investment than Joint Stock. However, NIP Group American is 1.11 times less risky than Joint Stock. It trades about 0.02 of its potential returns per unit of risk. Joint Stock is currently generating about -0.04 per unit of risk. If you would invest 715.00 in NIP Group American on September 14, 2024 and sell it today you would earn a total of 3.00 from holding NIP Group American or generate 0.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
NIP Group American vs. Joint Stock
Performance |
Timeline |
NIP Group American |
Joint Stock |
NIP Group and Joint Stock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NIP Group and Joint Stock
The main advantage of trading using opposite NIP Group and Joint Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIP Group position performs unexpectedly, Joint Stock 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 Joint Stock will offset losses from the drop in Joint Stock's long position.NIP Group vs. Brenmiller Energy Ltd | NIP Group vs. IPG Photonics | NIP Group vs. Joint Stock | NIP Group vs. Cadence Design Systems |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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