Correlation Between Amphenol and NISSHA CO
Can any of the company-specific risk be diversified away by investing in both Amphenol and NISSHA CO 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 Amphenol and NISSHA CO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amphenol and NISSHA LTD, you can compare the effects of market volatilities on Amphenol and NISSHA CO 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 Amphenol with a short position of NISSHA CO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amphenol and NISSHA CO.
Diversification Opportunities for Amphenol and NISSHA CO
Excellent diversification
The 3 months correlation between Amphenol and NISSHA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Amphenol and NISSHA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISSHA LTD and Amphenol 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 Amphenol are associated (or correlated) with NISSHA CO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISSHA LTD has no effect on the direction of Amphenol i.e., Amphenol and NISSHA CO go up and down completely randomly.
Pair Corralation between Amphenol and NISSHA CO
Assuming the 90 days horizon Amphenol is expected to generate 0.84 times more return on investment than NISSHA CO. However, Amphenol is 1.2 times less risky than NISSHA CO. It trades about 0.17 of its potential returns per unit of risk. NISSHA LTD is currently generating about -0.13 per unit of risk. If you would invest 5,811 in Amphenol on October 8, 2024 and sell it today you would earn a total of 983.00 from holding Amphenol or generate 16.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Amphenol vs. NISSHA LTD
Performance |
Timeline |
Amphenol |
NISSHA LTD |
Amphenol and NISSHA CO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Amphenol and NISSHA CO
The main advantage of trading using opposite Amphenol and NISSHA CO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amphenol position performs unexpectedly, NISSHA CO 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 NISSHA CO will offset losses from the drop in NISSHA CO's long position.Amphenol vs. Meli Hotels International | Amphenol vs. Inspire Medical Systems | Amphenol vs. Wyndham Hotels Resorts | Amphenol vs. MEDICAL FACILITIES NEW |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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