Correlation Between Yamaha and NGK Spark
Can any of the company-specific risk be diversified away by investing in both Yamaha and NGK Spark 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 Yamaha and NGK Spark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamaha Motor Co and NGK Spark Plug, you can compare the effects of market volatilities on Yamaha and NGK Spark 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 Yamaha with a short position of NGK Spark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamaha and NGK Spark.
Diversification Opportunities for Yamaha and NGK Spark
Pay attention - limited upside
The 3 months correlation between Yamaha and NGK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yamaha Motor Co and NGK Spark Plug in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NGK Spark Plug and Yamaha 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 Yamaha Motor Co are associated (or correlated) with NGK Spark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NGK Spark Plug has no effect on the direction of Yamaha i.e., Yamaha and NGK Spark go up and down completely randomly.
Pair Corralation between Yamaha and NGK Spark
If you would invest 1,802 in NGK Spark Plug on September 10, 2025 and sell it today you would earn a total of 0.00 from holding NGK Spark Plug or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Yamaha Motor Co vs. NGK Spark Plug
Performance |
| Timeline |
| Yamaha Motor |
| NGK Spark Plug |
Yamaha and NGK Spark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yamaha and NGK Spark
The main advantage of trading using opposite Yamaha and NGK Spark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamaha position performs unexpectedly, NGK Spark 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 NGK Spark will offset losses from the drop in NGK Spark's long position.| Yamaha vs. Isuzu Motors Limited | Yamaha vs. Yadea Group Holdings | Yamaha vs. Nissan Motor Co | Yamaha vs. Isuzu Motors |
| NGK Spark vs. Pirelli C SpA | NGK Spark vs. Aisin | NGK Spark vs. Yamaha Motor Co | NGK Spark vs. Yamaha Motor Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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