Correlation Between Nh Investment and Korean Reinsurance
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Korean Reinsurance 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 Reinsurance 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 Reinsurance Co, you can compare the effects of market volatilities on Nh Investment and Korean Reinsurance 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 Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Korean Reinsurance.
Diversification Opportunities for Nh Investment and Korean Reinsurance
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 005945 and Korean is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Korean Reinsurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korean Reinsurance 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 Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korean Reinsurance has no effect on the direction of Nh Investment i.e., Nh Investment and Korean Reinsurance go up and down completely randomly.
Pair Corralation between Nh Investment and Korean Reinsurance
Assuming the 90 days trading horizon Nh Investment is expected to generate 2.02 times less return on investment than Korean Reinsurance. But when comparing it to its historical volatility, Nh Investment And is 2.99 times less risky than Korean Reinsurance. It trades about 0.07 of its potential returns per unit of risk. Korean Reinsurance Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 806,000 in Korean Reinsurance Co on October 23, 2024 and sell it today you would earn a total of 9,000 from holding Korean Reinsurance Co or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. Korean Reinsurance Co
Performance |
| Timeline |
| Nh Investment And |
| Korean Reinsurance |
Nh Investment and Korean Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Korean Reinsurance
The main advantage of trading using opposite Nh Investment and Korean Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Korean Reinsurance 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 Reinsurance will offset losses from the drop in Korean Reinsurance's long position.| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. Company K Partners | Nh Investment vs. FnGuide | Nh Investment vs. DSC Investment |
| Korean Reinsurance vs. Jin Air Co | Korean Reinsurance vs. KTB Investment Securities | Korean Reinsurance vs. Nh Investment And | Korean Reinsurance vs. Daol 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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