Correlation Between NH Investment and Amogreentech
Can any of the company-specific risk be diversified away by investing in both NH Investment and Amogreentech 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 Amogreentech 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 Amogreentech Co, you can compare the effects of market volatilities on NH Investment and Amogreentech 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 Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Amogreentech.
Diversification Opportunities for NH Investment and Amogreentech
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005940 and Amogreentech is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of NH Investment i.e., NH Investment and Amogreentech go up and down completely randomly.
Pair Corralation between NH Investment and Amogreentech
Assuming the 90 days trading horizon NH Investment Securities is expected to under-perform the Amogreentech. But the stock apears to be less risky and, when comparing its historical volatility, NH Investment Securities is 1.47 times less risky than Amogreentech. The stock trades about -0.1 of its potential returns per unit of risk. The Amogreentech Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 584,000 in Amogreentech Co on October 14, 2024 and sell it today you would earn a total of 26,000 from holding Amogreentech Co or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. Amogreentech Co
Performance |
| Timeline |
| NH Investment Securities |
| Amogreentech |
NH Investment and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Amogreentech
The main advantage of trading using opposite NH Investment and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| NH Investment vs. Seoyon Topmetal Co | NH Investment vs. TS Investment Corp | NH Investment vs. Worldex Industry Trading | NH Investment vs. Handok Clean Tech |
| Amogreentech vs. DSC Investment | Amogreentech vs. E Investment Development | Amogreentech vs. NH Investment Securities | Amogreentech vs. LG Household Healthcare |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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