Correlation Between NH Investment and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both NH Investment and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on NH Investment and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Koryo Credit.
Diversification Opportunities for NH Investment and Koryo Credit
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 005940 and Koryo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of NH Investment i.e., NH Investment and Koryo Credit go up and down completely randomly.
Pair Corralation between NH Investment and Koryo Credit
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 1.66 times more return on investment than Koryo Credit. However, NH Investment is 1.66 times more volatile than Koryo Credit Information. It trades about 0.12 of its potential returns per unit of risk. Koryo Credit Information is currently generating about -0.25 per unit of risk. If you would invest 1,395,000 in NH Investment Securities on October 29, 2024 and sell it today you would earn a total of 32,000 from holding NH Investment Securities or generate 2.29% 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. Koryo Credit Information
Performance |
| Timeline |
| NH Investment Securities |
| Koryo Credit Information |
NH Investment and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Koryo Credit
The main advantage of trading using opposite NH Investment and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| NH Investment vs. SBI Investment KOREA | NH Investment vs. GS Retail Co | NH Investment vs. BGF Retail Co | NH Investment vs. Lion Chemtech Co |
| Koryo Credit vs. Dongbu Insurance Co | Koryo Credit vs. Choil Aluminum | Koryo Credit vs. Korea Computer | Koryo Credit vs. Hanjoo Light Metal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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