Correlation Between NH Investment and Samlip General
Can any of the company-specific risk be diversified away by investing in both NH Investment and Samlip General 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 NH Investment and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Investment Securities and Samlip General Foods, you can compare the effects of market volatilities on NH Investment and Samlip General 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 NH Investment with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Samlip General.
Diversification Opportunities for NH Investment and Samlip General
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 005940 and Samlip is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and NH Investment 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 NH Investment Securities are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of NH Investment i.e., NH Investment and Samlip General go up and down completely randomly.
Pair Corralation between NH Investment and Samlip General
Assuming the 90 days trading horizon NH Investment Securities is expected to under-perform the Samlip General. But the stock apears to be less risky and, when comparing its historical volatility, NH Investment Securities is 1.07 times less risky than Samlip General. The stock trades about -0.07 of its potential returns per unit of risk. The Samlip General Foods is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 4,529,747 in Samlip General Foods on October 7, 2024 and sell it today you would earn a total of 720,253 from holding Samlip General Foods or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. Samlip General Foods
Performance |
| Timeline |
| NH Investment Securities |
| Samlip General Foods |
NH Investment and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Samlip General
The main advantage of trading using opposite NH Investment and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
| Samlip General vs. Samyang Foods Co | Samlip General vs. Haitai Confectionery Foods | Samlip General vs. Sempio Foods Co | Samlip General vs. Eagle Veterinary Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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