Correlation Between Nisun International and Samfine Creation

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

By analyzing existing cross correlation between Nisun International Enterprise and Samfine Creation Holdings, you can compare the effects of market volatilities on Nisun International and Samfine Creation 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 Nisun International with a short position of Samfine Creation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nisun International and Samfine Creation.

Diversification Opportunities for Nisun International and Samfine Creation

-0.77

Correlation Coefficient

Nisun International  Samfine Creation

Pay attention - limited upside

The 3 months correlation between Nisun and Samfine is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nisun International Enterprise and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings and Nisun International 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 Nisun International Enterprise are associated (or correlated) with Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of Nisun International i.e., Nisun International and Samfine Creation go up and down completely randomly.

Pair Corralation between Nisun International and Samfine Creation

Given the investment horizon of 90 days Nisun International Enterprise is expected to under-perform the Samfine Creation. But the stock apears to be less risky and, when comparing its historical volatility, Nisun International Enterprise is 2.46 times less risky than Samfine Creation. The stock trades about -0.14 of its potential returns per unit of risk. The Samfine Creation Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  530.00  in Samfine Creation Holdings on September 17, 2024 and sell it today you would lose (413.00) from holding Samfine Creation Holdings or give up 77.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	68.75%
Values	Daily Returns

Nisun International Enterprise  vs.  Samfine Creation Holdings

Nisun International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nisun International Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Samfine Creation Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samfine Creation Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unsteady technical indicators, Samfine Creation reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nisun International and Samfine Creation

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

The idea behind Nisun International Enterprise and Samfine Creation Holdings 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.