Correlation Between Nh Investment and Dongbu Insurance
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Dongbu Insurance 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 Dongbu Insurance 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 Dongbu Insurance Co, you can compare the effects of market volatilities on Nh Investment and Dongbu Insurance 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 Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Dongbu Insurance.
Diversification Opportunities for Nh Investment and Dongbu Insurance
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 005945 and Dongbu is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance 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 Dongbu Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Insurance has no effect on the direction of Nh Investment i.e., Nh Investment and Dongbu Insurance go up and down completely randomly.
Pair Corralation between Nh Investment and Dongbu Insurance
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.2 times more return on investment than Dongbu Insurance. However, Nh Investment And is 4.96 times less risky than Dongbu Insurance. It trades about 0.06 of its potential returns per unit of risk. Dongbu Insurance Co is currently generating about 0.0 per unit of risk. If you would invest 1,201,000 in Nh Investment And on September 2, 2024 and sell it today you would earn a total of 7,000 from holding Nh Investment And or generate 0.58% 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. Dongbu Insurance Co
Performance |
| Timeline |
| Nh Investment And |
| Dongbu Insurance |
Nh Investment and Dongbu Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Dongbu Insurance
The main advantage of trading using opposite Nh Investment and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Dongbu Insurance 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 Dongbu Insurance will offset losses from the drop in Dongbu Insurance's long position.| Nh Investment vs. Solution Advanced Technology | Nh Investment vs. Busan Industrial Co | Nh Investment vs. Busan Ind | Nh Investment vs. Mirae Asset Daewoo |
| Dongbu Insurance vs. AptaBio Therapeutics | Dongbu Insurance vs. Daewoo SBI SPAC | Dongbu Insurance vs. Dream Security co | Dongbu Insurance vs. Microfriend |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |