Correlation Between Nomura Holdings and Quebecor
Can any of the company-specific risk be diversified away by investing in both Nomura Holdings and Quebecor 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 Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nomura Holdings and Quebecor, you can compare the effects of market volatilities on Nomura Holdings and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomura Holdings and Quebecor.
Diversification Opportunities for Nomura Holdings and Quebecor
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nomura and Quebecor is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Holdings and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 are associated (or correlated) with Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of Nomura Holdings i.e., Nomura Holdings and Quebecor go up and down completely randomly.
Pair Corralation between Nomura Holdings and Quebecor
Assuming the 90 days horizon Nomura Holdings is expected to generate 1.69 times more return on investment than Quebecor. However, Nomura Holdings is 1.69 times more volatile than Quebecor. It trades about 0.08 of its potential returns per unit of risk. Quebecor is currently generating about 0.13 per unit of risk. If you would invest 490.00 in Nomura Holdings on April 23, 2025 and sell it today you would earn a total of 40.00 from holding Nomura Holdings or generate 8.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nomura Holdings vs. Quebecor
Performance |
Timeline |
Nomura Holdings |
Quebecor |
Nomura Holdings and Quebecor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nomura Holdings and Quebecor
The main advantage of trading using opposite Nomura Holdings and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Holdings position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor's long position.Nomura Holdings vs. FIH MOBILE | Nomura Holdings vs. WillScot Mobile Mini | Nomura Holdings vs. Mobilezone Holding AG | Nomura Holdings vs. Cogent Communications Holdings |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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