Correlation Between NH Investment and UNISEM
Can any of the company-specific risk be diversified away by investing in both NH Investment and UNISEM 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 UNISEM 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 UNISEM Co, you can compare the effects of market volatilities on NH Investment and UNISEM 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 UNISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and UNISEM.
Diversification Opportunities for NH Investment and UNISEM
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 005940 and UNISEM is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and UNISEM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNISEM 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 UNISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNISEM has no effect on the direction of NH Investment i.e., NH Investment and UNISEM go up and down completely randomly.
Pair Corralation between NH Investment and UNISEM
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 0.65 times more return on investment than UNISEM. However, NH Investment Securities is 1.54 times less risky than UNISEM. It trades about 0.0 of its potential returns per unit of risk. UNISEM Co is currently generating about -0.23 per unit of risk. If you would invest 1,366,000 in NH Investment Securities on September 12, 2024 and sell it today you would lose (4,000) from holding NH Investment Securities or give up 0.29% 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. UNISEM Co
Performance |
| Timeline |
| NH Investment Securities |
| UNISEM |
NH Investment and UNISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and UNISEM
The main advantage of trading using opposite NH Investment and UNISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, UNISEM 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 UNISEM will offset losses from the drop in UNISEM's long position.| NH Investment vs. Koh Young Technology | NH Investment vs. Global Standard Technology | NH Investment vs. Woori Technology | NH Investment vs. Seoam Machinery Industry |
| UNISEM vs. Nice Information Telecommunication | UNISEM vs. Daehan Synthetic Fiber | UNISEM vs. Polaris Office Corp | UNISEM vs. Kukdong Oil Chemicals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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