Correlation Between Nh Investment and SeAH Bestee
Can any of the company-specific risk be diversified away by investing in both Nh Investment and SeAH Bestee 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 SeAH Bestee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nh Investment And and SeAH Bestee, you can compare the effects of market volatilities on Nh Investment and SeAH Bestee 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 SeAH Bestee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and SeAH Bestee.
Diversification Opportunities for Nh Investment and SeAH Bestee
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between 005945 and SeAH is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and SeAH Bestee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Bestee 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 And are associated (or correlated) with SeAH Bestee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Bestee has no effect on the direction of Nh Investment i.e., Nh Investment and SeAH Bestee go up and down completely randomly.
Pair Corralation between Nh Investment and SeAH Bestee
Assuming the 90 days trading horizon Nh Investment And is expected to under-perform the SeAH Bestee. But the stock apears to be less risky and, when comparing its historical volatility, Nh Investment And is 11.83 times less risky than SeAH Bestee. The stock trades about -0.04 of its potential returns per unit of risk. The SeAH Bestee is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,977,000 in SeAH Bestee on August 25, 2024 and sell it today you would earn a total of 138,000 from holding SeAH Bestee or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nh Investment And vs. SeAH Bestee
Performance |
| Timeline |
| Nh Investment And |
| SeAH Bestee |
Nh Investment and SeAH Bestee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and SeAH Bestee
The main advantage of trading using opposite Nh Investment and SeAH Bestee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, SeAH Bestee 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 SeAH Bestee will offset losses from the drop in SeAH Bestee's long position.| Nh Investment vs. Fine Besteel Co | Nh Investment vs. Dongil Steel Co | Nh Investment vs. LG Electronics Pfd | Nh Investment vs. Wonil Special Steel |
| SeAH Bestee vs. Lotte Data Communication | SeAH Bestee vs. Korea Information Engineering | SeAH Bestee vs. Daol Investment Securities | SeAH Bestee vs. Nh Investment And |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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