Correlation Between Namyang Dairy and V One
Can any of the company-specific risk be diversified away by investing in both Namyang Dairy and V One 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 Namyang Dairy and V One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namyang Dairy and V One Tech Co, you can compare the effects of market volatilities on Namyang Dairy and V One 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 Namyang Dairy with a short position of V One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namyang Dairy and V One.
Diversification Opportunities for Namyang Dairy and V One
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Namyang and 251630 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Namyang Dairy and V One Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V One Tech and Namyang Dairy 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 Namyang Dairy are associated (or correlated) with V One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V One Tech has no effect on the direction of Namyang Dairy i.e., Namyang Dairy and V One go up and down completely randomly.
Pair Corralation between Namyang Dairy and V One
Assuming the 90 days trading horizon Namyang Dairy is expected to under-perform the V One. But the stock apears to be less risky and, when comparing its historical volatility, Namyang Dairy is 1.34 times less risky than V One. The stock trades about -0.26 of its potential returns per unit of risk. The V One Tech Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 410,594 in V One Tech Co on September 29, 2024 and sell it today you would lose (25,594) from holding V One Tech Co or give up 6.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namyang Dairy vs. V One Tech Co
Performance |
| Timeline |
| Namyang Dairy |
| V One Tech |
Namyang Dairy and V One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namyang Dairy and V One
The main advantage of trading using opposite Namyang Dairy and V One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namyang Dairy position performs unexpectedly, V One 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 V One will offset losses from the drop in V One's long position.| Namyang Dairy vs. Digital Power Communications | Namyang Dairy vs. Sung Bo Chemicals | Namyang Dairy vs. Daejung Chemicals Metals | Namyang Dairy vs. Miwon Chemical |
| V One vs. Samsung Electronics Co | V One vs. Samsung Electronics Co | V One vs. LG Energy Solution | V One vs. SK Hynix |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |