Correlation Between NightFood Holdings and Cherry Hill
Can any of the company-specific risk be diversified away by investing in both NightFood Holdings and Cherry Hill 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 NightFood Holdings and Cherry Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NightFood Holdings and Cherry Hill Mortgage, you can compare the effects of market volatilities on NightFood Holdings and Cherry Hill 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 NightFood Holdings with a short position of Cherry Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of NightFood Holdings and Cherry Hill.
Diversification Opportunities for NightFood Holdings and Cherry Hill
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NightFood and Cherry is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NightFood Holdings and Cherry Hill Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cherry Hill Mortgage and NightFood 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 NightFood Holdings are associated (or correlated) with Cherry Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cherry Hill Mortgage has no effect on the direction of NightFood Holdings i.e., NightFood Holdings and Cherry Hill go up and down completely randomly.
Pair Corralation between NightFood Holdings and Cherry Hill
Given the investment horizon of 90 days NightFood Holdings is expected to generate 5.45 times more return on investment than Cherry Hill. However, NightFood Holdings is 5.45 times more volatile than Cherry Hill Mortgage. It trades about 0.21 of its potential returns per unit of risk. Cherry Hill Mortgage is currently generating about -0.07 per unit of risk. If you would invest 2.06 in NightFood Holdings on September 6, 2025 and sell it today you would earn a total of 4.93 from holding NightFood Holdings or generate 239.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NightFood Holdings vs. Cherry Hill Mortgage
Performance |
| Timeline |
| NightFood Holdings |
| Cherry Hill Mortgage |
NightFood Holdings and Cherry Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NightFood Holdings and Cherry Hill
The main advantage of trading using opposite NightFood Holdings and Cherry Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NightFood Holdings position performs unexpectedly, Cherry Hill 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 Cherry Hill will offset losses from the drop in Cherry Hill's long position.| NightFood Holdings vs. PARKSON Retail Group | NightFood Holdings vs. Indutrade AB | NightFood Holdings vs. ISE Chemicals | NightFood Holdings vs. Globe Trade Centre |
| Cherry Hill vs. FDG Electric Vehicles | Cherry Hill vs. Hyster Yale Materials Handling | Cherry Hill vs. CarsalesCom Ltd ADR | Cherry Hill vs. Grupo Carso SAB |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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