Correlation Between NH Investment and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both NH Investment and Shinsegae Information 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 Shinsegae Information 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 Shinsegae Information Communication, you can compare the effects of market volatilities on NH Investment and Shinsegae Information 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Shinsegae Information.
Diversification Opportunities for NH Investment and Shinsegae Information
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between 005940 and Shinsegae is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of NH Investment i.e., NH Investment and Shinsegae Information go up and down completely randomly.
Pair Corralation between NH Investment and Shinsegae Information
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 0.87 times more return on investment than Shinsegae Information. However, NH Investment Securities is 1.15 times less risky than Shinsegae Information. It trades about -0.02 of its potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.33 per unit of risk. If you would invest 1,351,000 in NH Investment Securities on August 25, 2024 and sell it today you would lose (11,000) from holding NH Investment Securities or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. Shinsegae Information Communic
Performance |
| Timeline |
| NH Investment Securities |
| Shinsegae Information |
NH Investment and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Shinsegae Information
The main advantage of trading using opposite NH Investment and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
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
| 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 | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges |