Correlation Between NH Investment and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both NH Investment and YeSUN Tech 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 YeSUN Tech 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 YeSUN Tech CoLtd, you can compare the effects of market volatilities on NH Investment and YeSUN Tech 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 YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and YeSUN Tech.
Diversification Opportunities for NH Investment and YeSUN Tech
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 005940 and YeSUN is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech 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 YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of NH Investment i.e., NH Investment and YeSUN Tech go up and down completely randomly.
Pair Corralation between NH Investment and YeSUN Tech
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 0.36 times more return on investment than YeSUN Tech. However, NH Investment Securities is 2.78 times less risky than YeSUN Tech. It trades about 0.0 of its potential returns per unit of risk. YeSUN Tech CoLtd is currently generating about -0.26 per unit of risk. If you would invest 1,366,000 in NH Investment Securities on September 12, 2024 and sell it today you would lose (4,000) from holding NH Investment Securities or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Investment Securities vs. YeSUN Tech CoLtd
Performance |
| Timeline |
| NH Investment Securities |
| YeSUN Tech CoLtd |
NH Investment and YeSUN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and YeSUN Tech
The main advantage of trading using opposite NH Investment and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech's long position.| NH Investment vs. Koh Young Technology | NH Investment vs. Global Standard Technology | NH Investment vs. Woori Technology | NH Investment vs. Seoam Machinery Industry |
| YeSUN Tech vs. Youngsin Metal Industrial | YeSUN Tech vs. Digital Power Communications | YeSUN Tech vs. Kukil Metal Co | YeSUN Tech vs. Inzi Display CoLtd |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |