Correlation Between NH Investment and Alton Sports
Can any of the company-specific risk be diversified away by investing in both NH Investment and Alton Sports 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 Alton Sports 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 Alton Sports CoLtd, you can compare the effects of market volatilities on NH Investment and Alton Sports 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 Alton Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Alton Sports.
Diversification Opportunities for NH Investment and Alton Sports
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 005940 and Alton is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Alton Sports CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alton Sports CoLtd 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 Alton Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alton Sports CoLtd has no effect on the direction of NH Investment i.e., NH Investment and Alton Sports go up and down completely randomly.
Pair Corralation between NH Investment and Alton Sports
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 1.02 times more return on investment than Alton Sports. However, NH Investment is 1.02 times more volatile than Alton Sports CoLtd. It trades about 0.17 of its potential returns per unit of risk. Alton Sports CoLtd is currently generating about -0.25 per unit of risk. If you would invest 1,444,000 in NH Investment Securities on November 27, 2024 and sell it today you would earn a total of 58,000 from holding NH Investment Securities or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. Alton Sports CoLtd
Performance |
| Timeline |
| NH Investment Securities |
| Alton Sports CoLtd |
NH Investment and Alton Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Alton Sports
The main advantage of trading using opposite NH Investment and Alton Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Alton Sports 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 Alton Sports will offset losses from the drop in Alton Sports' long position.| NH Investment vs. SV Investment | NH Investment vs. Green Cross Medical | NH Investment vs. Daol Investment Securities | NH Investment vs. E Investment Development |
| Alton Sports vs. Grand Korea Leisure | Alton Sports vs. Haesung Industrial Co | Alton Sports vs. Seoyon Topmetal Co | Alton Sports vs. PlayD 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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