Correlation Between NH Investment and WooDeumGee Farm
Can any of the company-specific risk be diversified away by investing in both NH Investment and WooDeumGee Farm 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 WooDeumGee Farm 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 WooDeumGee Farm Co,, you can compare the effects of market volatilities on NH Investment and WooDeumGee Farm 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 WooDeumGee Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Investment and WooDeumGee Farm.
Diversification Opportunities for NH Investment and WooDeumGee Farm
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 005940 and WooDeumGee is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding NH Investment Securities and WooDeumGee Farm Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WooDeumGee Farm Co, 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 WooDeumGee Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WooDeumGee Farm Co, has no effect on the direction of NH Investment i.e., NH Investment and WooDeumGee Farm go up and down completely randomly.
Pair Corralation between NH Investment and WooDeumGee Farm
Assuming the 90 days trading horizon NH Investment Securities is expected to generate 0.32 times more return on investment than WooDeumGee Farm. However, NH Investment Securities is 3.1 times less risky than WooDeumGee Farm. It trades about 0.09 of its potential returns per unit of risk. WooDeumGee Farm Co, is currently generating about -0.02 per unit of risk. If you would invest 826,015 in NH Investment Securities on September 5, 2024 and sell it today you would earn a total of 626,985 from holding NH Investment Securities or generate 75.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.66% |
| Values | Daily Returns |
NH Investment Securities vs. WooDeumGee Farm Co,
Performance |
| Timeline |
| NH Investment Securities |
| WooDeumGee Farm Co, |
NH Investment and WooDeumGee Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Investment and WooDeumGee Farm
The main advantage of trading using opposite NH Investment and WooDeumGee Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Investment position performs unexpectedly, WooDeumGee Farm 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 WooDeumGee Farm will offset losses from the drop in WooDeumGee Farm's long position.| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
| WooDeumGee Farm vs. Hanwha InvestmentSecurities Co | WooDeumGee Farm vs. Pureun Mutual Savings | WooDeumGee Farm vs. Mobileleader CoLtd | WooDeumGee Farm 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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