Correlation Between Ingen Technologies and Nihon Kohden
Can any of the company-specific risk be diversified away by investing in both Ingen Technologies and Nihon Kohden 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 Ingen Technologies and Nihon Kohden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingen Technologies and Nihon Kohden Corp, you can compare the effects of market volatilities on Ingen Technologies and Nihon Kohden 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 Ingen Technologies with a short position of Nihon Kohden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingen Technologies and Nihon Kohden.
Diversification Opportunities for Ingen Technologies and Nihon Kohden
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ingen and Nihon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ingen Technologies and Nihon Kohden Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nihon Kohden Corp and Ingen Technologies 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 Ingen Technologies are associated (or correlated) with Nihon Kohden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nihon Kohden Corp has no effect on the direction of Ingen Technologies i.e., Ingen Technologies and Nihon Kohden go up and down completely randomly.
Pair Corralation between Ingen Technologies and Nihon Kohden
Given the investment horizon of 90 days Ingen Technologies is expected to generate 60.81 times more return on investment than Nihon Kohden. However, Ingen Technologies is 60.81 times more volatile than Nihon Kohden Corp. It trades about 0.13 of its potential returns per unit of risk. Nihon Kohden Corp is currently generating about 0.02 per unit of risk. If you would invest 0.01 in Ingen Technologies on January 27, 2024 and sell it today you would lose (0.01) from holding Ingen Technologies or give up 100.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ingen Technologies vs. Nihon Kohden Corp
Performance |
Timeline |
Ingen Technologies |
Nihon Kohden Corp |
Ingen Technologies and Nihon Kohden Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ingen Technologies and Nihon Kohden
The main advantage of trading using opposite Ingen Technologies and Nihon Kohden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingen Technologies position performs unexpectedly, Nihon Kohden 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 Nihon Kohden will offset losses from the drop in Nihon Kohden's long position.Ingen Technologies vs. Medtronic PLC | Ingen Technologies vs. CONMED | Ingen Technologies vs. Glaukos Corp | Ingen Technologies vs. Integer Holdings Corp |
Nihon Kohden vs. Medtronic PLC | Nihon Kohden vs. CONMED | Nihon Kohden vs. Glaukos Corp | Nihon Kohden vs. Integer Holdings Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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