Correlation Between NH Investment and PI Advanced
Can any of the company-specific risk be diversified away by investing in both NH Investment and PI Advanced 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 PI Advanced 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 PI Advanced Materials, you can compare the effects of market volatilities on NH Investment and PI Advanced 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 PI Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and PI Advanced.
Diversification Opportunities for NH Investment and PI Advanced
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between 005940 and 178920 is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and PI Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PI Advanced Materials 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 PI Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PI Advanced Materials has no effect on the direction of NH Investment i.e., NH Investment and PI Advanced go up and down completely randomly.
Pair Corralation between NH Investment and PI Advanced
Assuming the 90 days trading horizon NH Investment Securities is expected to under-perform the PI Advanced. But the stock apears to be less risky and, when comparing its historical volatility, NH Investment Securities is 2.46 times less risky than PI Advanced. The stock trades about -0.03 of its potential returns per unit of risk. The PI Advanced Materials is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,553,000 in PI Advanced Materials on October 11, 2024 and sell it today you would earn a total of 348,000 from holding PI Advanced Materials or generate 22.41% 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. PI Advanced Materials
Performance |
| Timeline |
| NH Investment Securities |
| PI Advanced Materials |
NH Investment and PI Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and PI Advanced
The main advantage of trading using opposite NH Investment and PI Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, PI Advanced 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 PI Advanced will offset losses from the drop in PI Advanced's long position.| NH Investment vs. Duksan Hi Metal | NH Investment vs. Mirai Semiconductors Co | NH Investment vs. Dongil Metal Co | NH Investment vs. Hanjoo Light Metal |
| PI Advanced vs. Hanjin Transportation Co | PI Advanced vs. Lotte Non Life Insurance | PI Advanced vs. NH Investment Securities | PI Advanced vs. Woori Technology Investment |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |