Correlation Between Nippon Paint and Anhui Conch

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Can any of the company-specific risk be diversified away by investing in both Nippon Paint and Anhui Conch 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 Nippon Paint and Anhui Conch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nippon Paint Holdings and Anhui Conch Cement, you can compare the effects of market volatilities on Nippon Paint and Anhui Conch 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 Nippon Paint with a short position of Anhui Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nippon Paint and Anhui Conch.

Diversification Opportunities for Nippon Paint and Anhui Conch

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Nippon and Anhui is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nippon Paint Holdings and Anhui Conch Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Conch Cement and Nippon Paint 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 Nippon Paint Holdings are associated (or correlated) with Anhui Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Conch Cement has no effect on the direction of Nippon Paint i.e., Nippon Paint and Anhui Conch go up and down completely randomly.

Pair Corralation between Nippon Paint and Anhui Conch

If you would invest  990.00  in Anhui Conch Cement on October 7, 2025 and sell it today you would earn a total of  478.00  from holding Anhui Conch Cement or generate 48.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Nippon Paint Holdings  vs.  Anhui Conch Cement

 Performance 
       Timeline  
Nippon Paint Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Nippon Paint Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Nippon Paint is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Anhui Conch Cement 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Anhui Conch Cement has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Anhui Conch is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nippon Paint and Anhui Conch Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nippon Paint and Anhui Conch

The main advantage of trading using opposite Nippon Paint and Anhui Conch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nippon Paint position performs unexpectedly, Anhui Conch 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 Anhui Conch will offset losses from the drop in Anhui Conch's long position.
The idea behind Nippon Paint Holdings and Anhui Conch Cement pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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