Correlation Between NH Foods and LINE
Can any of the company-specific risk be diversified away by investing in both NH Foods and LINE 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 NH Foods and LINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and LINE Corporation, you can compare the effects of market volatilities on NH Foods and LINE 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 NH Foods with a short position of LINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and LINE.
Diversification Opportunities for NH Foods and LINE
Pay attention - limited upside
The 3 months correlation between NIPMY and LINE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and LINE Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINE and NH Foods 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 NH Foods Ltd are associated (or correlated) with LINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINE has no effect on the direction of NH Foods i.e., NH Foods and LINE go up and down completely randomly.
Pair Corralation between NH Foods and LINE
If you would invest 1,510 in NH Foods Ltd on February 1, 2024 and sell it today you would earn a total of 115.00 from holding NH Foods Ltd or generate 7.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
NH Foods Ltd vs. LINE Corp.
Performance |
Timeline |
NH Foods |
LINE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NH Foods and LINE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NH Foods and LINE
The main advantage of trading using opposite NH Foods and LINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, LINE 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 LINE will offset losses from the drop in LINE's long position.NH Foods vs. Kellanova | NH Foods vs. Lancaster Colony | NH Foods vs. The A2 Milk | NH Foods vs. Artisan Consumer Goods |
LINE vs. Wingstop | LINE vs. Franklin Street Properties | LINE vs. Biglari Holdings | LINE vs. BJs Restaurants |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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