Correlation Between Nice and Export Inv

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

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

Diversification Opportunities for Nice and Export Inv

-0.56

Correlation Coefficient

Nice  Export Inv

Excellent diversification

The 3 months correlation between Nice and Export is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nice and Export Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Export Inv and Nice 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 Nice are associated (or correlated) with Export Inv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Export Inv has no effect on the direction of Nice i.e., Nice and Export Inv go up and down completely randomly.

Pair Corralation between Nice and Export Inv

Assuming the 90 days trading horizon Nice is expected to under-perform the Export Inv. In addition to that, Nice is 1.07 times more volatile than Export Inv. It trades about -0.04 of its total potential returns per unit of risk. Export Inv is currently generating about 0.21 per unit of volatility. If you would invest  672,900  in Export Inv on April 24, 2025 and sell it today you would earn a total of  157,100  from holding Export Inv or generate 23.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nice  vs.  Export Inv

Nice

Risk-Adjusted Performance

Very Weak

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

Export Inv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Export Inv are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Export Inv sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nice and Export Inv

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

The idea behind Nice and Export Inv 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 Anywhere module to track or share privately all of your investments from the convenience of any device.