Correlation Between NH Investment and Innodep
Can any of the company-specific risk be diversified away by investing in both NH Investment and Innodep 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 Innodep 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 Innodep, you can compare the effects of market volatilities on NH Investment and Innodep 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 Innodep. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and Innodep.
Diversification Opportunities for NH Investment and Innodep
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 005940 and Innodep is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and Innodep in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodep 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 Innodep. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innodep has no effect on the direction of NH Investment i.e., NH Investment and Innodep go up and down completely randomly.
Pair Corralation between NH Investment and Innodep
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 0.67 times more return on investment than Innodep. However, NH Investment Securities is 1.48 times less risky than Innodep. It trades about 0.19 of its potential returns per unit of risk. Innodep is currently generating about -0.05 per unit of risk. If you would invest 1,358,000 in NH Investment Securities on September 5, 2024 and sell it today you would earn a total of 95,000 from holding NH Investment Securities or generate 7.0% 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. Innodep
Performance |
| Timeline |
| NH Investment Securities |
| Innodep |
NH Investment and Innodep Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and Innodep
The main advantage of trading using opposite NH Investment and Innodep positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, Innodep 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 Innodep will offset losses from the drop in Innodep's long position.| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
| Innodep vs. Woori Technology Investment | Innodep vs. EBEST Investment Securities | Innodep vs. Iljin Display | Innodep vs. NH Investment Securities |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |