Correlation Between Nissin Foods and ABB
Can any of the company-specific risk be diversified away by investing in both Nissin Foods and ABB 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 Nissin Foods and ABB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nissin Foods Holdings and ABB, you can compare the effects of market volatilities on Nissin Foods and ABB 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 Nissin Foods with a short position of ABB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nissin Foods and ABB.
Diversification Opportunities for Nissin Foods and ABB
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nissin and ABB is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nissin Foods Holdings and ABB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABB and Nissin 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 Nissin Foods Holdings are associated (or correlated) with ABB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABB has no effect on the direction of Nissin Foods i.e., Nissin Foods and ABB go up and down completely randomly.
Pair Corralation between Nissin Foods and ABB
Assuming the 90 days horizon Nissin Foods Holdings is expected to under-perform the ABB. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nissin Foods Holdings is 1.16 times less risky than ABB. The pink sheet trades about -0.01 of its potential returns per unit of risk. The ABB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,712 in ABB on August 21, 2025 and sell it today you would earn a total of 3.00 from holding ABB or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nissin Foods Holdings vs. ABB
Performance |
| Timeline |
| Nissin Foods Holdings |
| ABB |
Nissin Foods and ABB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nissin Foods and ABB
The main advantage of trading using opposite Nissin Foods and ABB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nissin Foods position performs unexpectedly, ABB 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 ABB will offset losses from the drop in ABB's long position.| Nissin Foods vs. China Feihe Limited | Nissin Foods vs. Gruma SAB de | Nissin Foods vs. Emmi AG | Nissin Foods vs. Meiji Holdings Co |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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