Correlation Between Nh Investment and Kyung Chang
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Kyung Chang 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 Kyung Chang 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 Kyung Chang Industrial, you can compare the effects of market volatilities on Nh Investment and Kyung Chang 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 Kyung Chang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Kyung Chang.
Diversification Opportunities for Nh Investment and Kyung Chang
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005945 and Kyung is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Kyung Chang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyung Chang Industrial 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 Kyung Chang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyung Chang Industrial has no effect on the direction of Nh Investment i.e., Nh Investment and Kyung Chang go up and down completely randomly.
Pair Corralation between Nh Investment and Kyung Chang
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.36 times more return on investment than Kyung Chang. However, Nh Investment And is 2.79 times less risky than Kyung Chang. It trades about 0.03 of its potential returns per unit of risk. Kyung Chang Industrial is currently generating about -0.06 per unit of risk. If you would invest 1,198,000 in Nh Investment And on October 14, 2024 and sell it today you would earn a total of 19,000 from holding Nh Investment And or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. Kyung Chang Industrial
Performance |
| Timeline |
| Nh Investment And |
| Kyung Chang Industrial |
Nh Investment and Kyung Chang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Kyung Chang
The main advantage of trading using opposite Nh Investment and Kyung Chang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Kyung Chang 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 Kyung Chang will offset losses from the drop in Kyung Chang's long position.| Nh Investment vs. LB Investment | Nh Investment vs. BIT Computer Co | Nh Investment vs. EBEST Investment Securities | Nh Investment vs. Inzi Display CoLtd |
| Kyung Chang vs. Nh Investment And | Kyung Chang vs. Korea Investment Holdings | Kyung Chang vs. NH Investment Securities | Kyung Chang vs. SeAH Besteel 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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