Correlation Between Nikon and Plby

Can any of the company-specific risk be diversified away by investing in both Nikon and Plby 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 Nikon and Plby into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nikon and Plby Group, you can compare the effects of market volatilities on Nikon and Plby 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 Nikon with a short position of Plby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nikon and Plby.

Diversification Opportunities for Nikon and Plby

0.0

Correlation Coefficient

Nikon  Plby

Pay attention - limited upside

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

Pair Corralation between Nikon and Plby

If you would invest  54.00  in Plby Group on September 3, 2024 and sell it today you would earn a total of  84.00  from holding Plby Group or generate 155.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Nikon  vs.  Plby Group

Nikon

Risk-Adjusted Performance

0 of 100

Very Weak

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

Plby Group

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Plby Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental drivers, Plby showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nikon and Plby

The main advantage of trading using opposite Nikon and Plby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nikon position performs unexpectedly, Plby 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 Plby will offset losses from the drop in Plby's long position.

The idea behind Nikon and Plby Group 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.