Correlation Between Nh Investment and Hankuk Steel
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Hankuk Steel 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 Hankuk Steel 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 Hankuk Steel Wire, you can compare the effects of market volatilities on Nh Investment and Hankuk Steel 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 Hankuk Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Hankuk Steel.
Diversification Opportunities for Nh Investment and Hankuk Steel
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between 005945 and Hankuk is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Hankuk Steel Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankuk Steel Wire 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 Hankuk Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankuk Steel Wire has no effect on the direction of Nh Investment i.e., Nh Investment and Hankuk Steel go up and down completely randomly.
Pair Corralation between Nh Investment and Hankuk Steel
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.43 times more return on investment than Hankuk Steel. However, Nh Investment And is 2.34 times less risky than Hankuk Steel. It trades about 0.12 of its potential returns per unit of risk. Hankuk Steel Wire is currently generating about 0.0 per unit of risk. If you would invest 873,300 in Nh Investment And on September 12, 2024 and sell it today you would earn a total of 336,700 from holding Nh Investment And or generate 38.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. Hankuk Steel Wire
Performance |
| Timeline |
| Nh Investment And |
| Hankuk Steel Wire |
Nh Investment and Hankuk Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Hankuk Steel
The main advantage of trading using opposite Nh Investment and Hankuk Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Hankuk Steel 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 Hankuk Steel will offset losses from the drop in Hankuk Steel's long position.| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. DSC Investment | Nh Investment vs. Solution Advanced Technology | Nh Investment vs. Busan Industrial Co |
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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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