Correlation Between Nh Investment and Sam Yang
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Sam Yang 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 Sam Yang 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 Sam Yang Foods, you can compare the effects of market volatilities on Nh Investment and Sam Yang 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 Sam Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Sam Yang.
Diversification Opportunities for Nh Investment and Sam Yang
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 005945 and Sam is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Sam Yang Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam Yang Foods 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 Sam Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam Yang Foods has no effect on the direction of Nh Investment i.e., Nh Investment and Sam Yang go up and down completely randomly.
Pair Corralation between Nh Investment and Sam Yang
Assuming the 90 days trading horizon Nh Investment is expected to generate 17.29 times less return on investment than Sam Yang. But when comparing it to its historical volatility, Nh Investment And is 3.89 times less risky than Sam Yang. It trades about 0.03 of its potential returns per unit of risk. Sam Yang Foods is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 56,800,000 in Sam Yang Foods on October 14, 2024 and sell it today you would earn a total of 18,200,000 from holding Sam Yang Foods or generate 32.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. Sam Yang Foods
Performance |
| Timeline |
| Nh Investment And |
| Sam Yang Foods |
Nh Investment and Sam Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Sam Yang
The main advantage of trading using opposite Nh Investment and Sam Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Sam Yang 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 Sam Yang will offset losses from the drop in Sam Yang's long position.| Nh Investment vs. LB Investment | Nh Investment vs. BIT Computer Co | Nh Investment vs. EBEST Investment Securities | Nh Investment vs. Inzi Display CoLtd |
| Sam Yang vs. Hankuk Steel Wire | Sam Yang vs. Husteel | Sam Yang vs. Fine Besteel Co | Sam Yang vs. SeAH Besteel Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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