Correlation Between NH Investment and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both NH Investment and Atinum Investment 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 Atinum Investment 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 Atinum Investment Co, you can compare the effects of market volatilities on NH Investment and Atinum Investment 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 Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Atinum Investment.
Diversification Opportunities for NH Investment and Atinum Investment
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005940 and Atinum is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment 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 Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of NH Investment i.e., NH Investment and Atinum Investment go up and down completely randomly.
Pair Corralation between NH Investment and Atinum Investment
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 0.53 times more return on investment than Atinum Investment. However, NH Investment Securities is 1.9 times less risky than Atinum Investment. It trades about 0.09 of its potential returns per unit of risk. Atinum Investment Co is currently generating about 0.0 per unit of risk. If you would invest 976,372 in NH Investment Securities on August 24, 2024 and sell it today you would earn a total of 373,628 from holding NH Investment Securities or generate 38.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. Atinum Investment Co
Performance |
| Timeline |
| NH Investment Securities |
| Atinum Investment |
NH Investment and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Atinum Investment
The main advantage of trading using opposite NH Investment and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Atinum Investment 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
| Atinum Investment vs. FNSTech Co | Atinum Investment vs. Daehan Steel | Atinum Investment vs. Intellian Technologies | Atinum Investment vs. A Tech Solution 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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