Correlation Between NH Investment and Nice Information
Can any of the company-specific risk be diversified away by investing in both NH Investment and Nice 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 Nice 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 Nice Information Telecommunication, you can compare the effects of market volatilities on NH Investment and Nice 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 Nice Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Nice Information.
Diversification Opportunities for NH Investment and Nice Information
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 005940 and Nice is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Nice Information Telecommunica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice Information Tel 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 Nice Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice Information Tel has no effect on the direction of NH Investment i.e., NH Investment and Nice Information go up and down completely randomly.
Pair Corralation between NH Investment and Nice Information
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 0.99 times more return on investment than Nice Information. However, NH Investment Securities is 1.01 times less risky than Nice Information. It trades about 0.08 of its potential returns per unit of risk. Nice Information Telecommunication is currently generating about -0.04 per unit of risk. If you would invest 830,353 in NH Investment Securities on August 25, 2024 and sell it today you would earn a total of 509,647 from holding NH Investment Securities or generate 61.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. Nice Information Telecommunica
Performance |
| Timeline |
| NH Investment Securities |
| Nice Information Tel |
NH Investment and Nice Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Nice Information
The main advantage of trading using opposite NH Investment and Nice Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Nice 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 Nice Information will offset losses from the drop in Nice 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 |
| Nice Information vs. Soulbrain Holdings Co | Nice Information vs. NICE Total Cash | Nice Information vs. Geumhwa Plant Service | Nice Information vs. AfreecaTV 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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