Correlation Between LIFEWAY FOODS and Nintendo
Can any of the company-specific risk be diversified away by investing in both LIFEWAY FOODS and Nintendo 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 LIFEWAY FOODS and Nintendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFEWAY FOODS and Nintendo Co, you can compare the effects of market volatilities on LIFEWAY FOODS and Nintendo 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 LIFEWAY FOODS with a short position of Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFEWAY FOODS and Nintendo.
Diversification Opportunities for LIFEWAY FOODS and Nintendo
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LIFEWAY and Nintendo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding LIFEWAY FOODS and Nintendo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo and LIFEWAY 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 LIFEWAY FOODS are associated (or correlated) with Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo has no effect on the direction of LIFEWAY FOODS i.e., LIFEWAY FOODS and Nintendo go up and down completely randomly.
Pair Corralation between LIFEWAY FOODS and Nintendo
Assuming the 90 days trading horizon LIFEWAY FOODS is expected to generate 1.52 times more return on investment than Nintendo. However, LIFEWAY FOODS is 1.52 times more volatile than Nintendo Co. It trades about 0.03 of its potential returns per unit of risk. Nintendo Co is currently generating about -0.01 per unit of risk. If you would invest 2,140 in LIFEWAY FOODS on July 27, 2025 and sell it today you would earn a total of 80.00 from holding LIFEWAY FOODS or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFEWAY FOODS vs. Nintendo Co
Performance |
| Timeline |
| LIFEWAY FOODS |
| Nintendo |
LIFEWAY FOODS and Nintendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFEWAY FOODS and Nintendo
The main advantage of trading using opposite LIFEWAY FOODS and Nintendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFEWAY FOODS position performs unexpectedly, Nintendo 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 Nintendo will offset losses from the drop in Nintendo's long position.| LIFEWAY FOODS vs. SINGAPORE AIRLINES | LIFEWAY FOODS vs. ATOSS SOFTWARE | LIFEWAY FOODS vs. Sunny Optical Technology | LIFEWAY FOODS vs. X FAB Silicon Foundries |
| Nintendo vs. PennyMac Mortgage Investment | Nintendo vs. PETCO HEALTH CLA | Nintendo vs. Japan Asia Investment | Nintendo vs. Garofalo Health Care |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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