Correlation Between Nh Investment and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both Nh Investment and PLAYWITH 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 PLAYWITH 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 PLAYWITH, you can compare the effects of market volatilities on Nh Investment and PLAYWITH 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 PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and PLAYWITH.
Diversification Opportunities for Nh Investment and PLAYWITH
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 005945 and PLAYWITH is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH 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 PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of Nh Investment i.e., Nh Investment and PLAYWITH go up and down completely randomly.
Pair Corralation between Nh Investment and PLAYWITH
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.34 times more return on investment than PLAYWITH. However, Nh Investment And is 2.98 times less risky than PLAYWITH. It trades about 0.63 of its potential returns per unit of risk. PLAYWITH is currently generating about -0.29 per unit of risk. If you would invest 1,218,000 in Nh Investment And on November 5, 2024 and sell it today you would earn a total of 57,000 from holding Nh Investment And or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. PLAYWITH
Performance |
| Timeline |
| Nh Investment And |
| PLAYWITH |
Nh Investment and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and PLAYWITH
The main advantage of trading using opposite Nh Investment and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| Nh Investment vs. DB Insurance Co | Nh Investment vs. Korea Alcohol Industrial | Nh Investment vs. PJ Electronics Co | Nh Investment vs. Kakao Games Corp |
| PLAYWITH vs. Bookook Steel | PLAYWITH vs. Insun Environment New | PLAYWITH vs. BooKook Steel Co | PLAYWITH vs. LG Household Healthcare |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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