Correlation Between Nomura Holdings and SAI Old

Can any of the company-specific risk be diversified away by investing in both Nomura Holdings and SAI Old 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 Nomura Holdings and SAI Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nomura Holdings ADR and SAI Old, you can compare the effects of market volatilities on Nomura Holdings and SAI Old 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 Nomura Holdings with a short position of SAI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and SAI Old.

Diversification Opportunities for Nomura Holdings and SAI Old

0.0

Correlation Coefficient

Nomura Holdings  SAI Old

Pay attention - limited upside

The 3 months correlation between Nomura and SAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings ADR and SAI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAI Old and Nomura Holdings 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 Nomura Holdings ADR are associated (or correlated) with SAI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAI Old has no effect on the direction of Nomura Holdings i.e., Nomura Holdings and SAI Old go up and down completely randomly.

Pair Corralation between Nomura Holdings and SAI Old

If you would invest  583.00  in Nomura Holdings ADR on December 28, 2024 and sell it today you would earn a total of  56.00  from holding Nomura Holdings ADR or generate 9.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Nomura Holdings ADR  vs.  SAI Old

Nomura Holdings ADR

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nomura Holdings ADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak primary indicators, Nomura Holdings may actually be approaching a critical reversion point that can send shares even higher in April 2025.

SAI Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Nomura Holdings and SAI Old

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

The idea behind Nomura Holdings ADR and SAI Old 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.