Correlation Between NESNVX and Celestica

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

By analyzing existing cross correlation between NESNVX 4125 01 OCT 27 and Celestica, you can compare the effects of market volatilities on NESNVX and Celestica 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 NESNVX with a short position of Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of NESNVX and Celestica.

Diversification Opportunities for NESNVX and Celestica

0.0

Correlation Coefficient

NESNVX  Celestica

Pay attention - limited upside

The 3 months correlation between NESNVX and Celestica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NESNVX 4125 01 OCT 27 and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica and NESNVX 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 NESNVX 4125 01 OCT 27 are associated (or correlated) with Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of NESNVX i.e., NESNVX and Celestica go up and down completely randomly.

Pair Corralation between NESNVX and Celestica

If you would invest  5,433  in Celestica on October 6, 2024 and sell it today you would earn a total of  3,874  from holding Celestica or generate 71.3% return on investment over 90 days.

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

NESNVX 4125 01 OCT 27  vs.  Celestica

NESNVX 4125 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 4125 01 OCT 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NESNVX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Celestica

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Celestica are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating essential indicators, Celestica unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NESNVX and Celestica

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

The idea behind NESNVX 4125 01 OCT 27 and Celestica 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.