Correlation Between Nh Investment and Korean Air
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Korean Air 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 Korean Air 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 Korean Air Lines, you can compare the effects of market volatilities on Nh Investment and Korean Air 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 Korean Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Korean Air.
Diversification Opportunities for Nh Investment and Korean Air
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 005945 and Korean is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Korean Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Air Lines 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 Korean Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Air Lines has no effect on the direction of Nh Investment i.e., Nh Investment and Korean Air go up and down completely randomly.
Pair Corralation between Nh Investment and Korean Air
Assuming the 90 days trading horizon Nh Investment is expected to generate 300.7 times less return on investment than Korean Air. But when comparing it to its historical volatility, Nh Investment And is 3.5 times less risky than Korean Air. It trades about 0.0 of its potential returns per unit of risk. Korean Air Lines is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,370,000 in Korean Air Lines on August 29, 2024 and sell it today you would earn a total of 155,000 from holding Korean Air Lines or generate 6.54% 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 And vs. Korean Air Lines
Performance |
| Timeline |
| Nh Investment And |
| Korean Air Lines |
Nh Investment and Korean Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Korean Air
The main advantage of trading using opposite Nh Investment and Korean Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Korean Air 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 Korean Air will offset losses from the drop in Korean Air's long position.| Nh Investment vs. DB Financial Investment | Nh Investment vs. BNK Financial Group | Nh Investment vs. DB Insurance Co | Nh Investment vs. E Investment Development |
| Korean Air vs. Samsung Electronics Co | Korean Air vs. Samsung Electronics Co | Korean Air vs. Hyundai Motor Co | Korean Air vs. Hyundai Motor |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |