Correlation Between Nissan Chemical and Cadeler AS
Can any of the company-specific risk be diversified away by investing in both Nissan Chemical and Cadeler AS 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 Nissan Chemical and Cadeler AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nissan Chemical and Cadeler AS, you can compare the effects of market volatilities on Nissan Chemical and Cadeler AS 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 Nissan Chemical with a short position of Cadeler AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nissan Chemical and Cadeler AS.
Diversification Opportunities for Nissan Chemical and Cadeler AS
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nissan and Cadeler is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nissan Chemical and Cadeler AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadeler AS and Nissan Chemical 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 Nissan Chemical are associated (or correlated) with Cadeler AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadeler AS has no effect on the direction of Nissan Chemical i.e., Nissan Chemical and Cadeler AS go up and down completely randomly.
Pair Corralation between Nissan Chemical and Cadeler AS
Assuming the 90 days horizon Nissan Chemical is expected to generate 0.22 times more return on investment than Cadeler AS. However, Nissan Chemical is 4.6 times less risky than Cadeler AS. It trades about -0.21 of its potential returns per unit of risk. Cadeler AS is currently generating about -0.07 per unit of risk. If you would invest 3,300 in Nissan Chemical on August 28, 2025 and sell it today you would lose (100.00) from holding Nissan Chemical or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nissan Chemical vs. Cadeler AS
Performance |
| Timeline |
| Nissan Chemical |
| Cadeler AS |
Nissan Chemical and Cadeler AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nissan Chemical and Cadeler AS
The main advantage of trading using opposite Nissan Chemical and Cadeler AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nissan Chemical position performs unexpectedly, Cadeler AS 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 Cadeler AS will offset losses from the drop in Cadeler AS's long position.| Nissan Chemical vs. NVIDIA | Nissan Chemical vs. Apple Inc | Nissan Chemical vs. Alphabet Inc Class C | Nissan Chemical vs. Microsoft |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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