Correlation Between Nh Investment and Keyang Electric
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Keyang Electric 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 Keyang Electric 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 Keyang Electric Machinery, you can compare the effects of market volatilities on Nh Investment and Keyang Electric 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 Keyang Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Keyang Electric.
Diversification Opportunities for Nh Investment and Keyang Electric
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 005945 and Keyang is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Keyang Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyang Electric Machinery 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 Keyang Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyang Electric Machinery has no effect on the direction of Nh Investment i.e., Nh Investment and Keyang Electric go up and down completely randomly.
Pair Corralation between Nh Investment and Keyang Electric
Assuming the 90 days trading horizon Nh Investment is expected to generate 1.33 times less return on investment than Keyang Electric. But when comparing it to its historical volatility, Nh Investment And is 4.32 times less risky than Keyang Electric. It trades about 0.42 of its potential returns per unit of risk. Keyang Electric Machinery is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 359,500 in Keyang Electric Machinery on October 28, 2024 and sell it today you would earn a total of 20,000 from holding Keyang Electric Machinery or generate 5.56% 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. Keyang Electric Machinery
Performance |
| Timeline |
| Nh Investment And |
| Keyang Electric Machinery |
Nh Investment and Keyang Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Keyang Electric
The main advantage of trading using opposite Nh Investment and Keyang Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Keyang Electric 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 Keyang Electric will offset losses from the drop in Keyang Electric's long position.| Nh Investment vs. Shinsegae Food | Nh Investment vs. Alton Sports CoLtd | Nh Investment vs. Playgram Co | Nh Investment vs. Daiyang Metal Co |
| Keyang Electric vs. Korea Petro Chemical | Keyang Electric vs. Youngchang Chemical Co | Keyang Electric vs. Namhae Chemical | Keyang Electric vs. Kyung In Synthetic 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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