Correlation Between Nh Investment and Stic Investments
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Stic Investments 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 Stic Investments 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 Stic Investments, you can compare the effects of market volatilities on Nh Investment and Stic Investments 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 Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Stic Investments.
Diversification Opportunities for Nh Investment and Stic Investments
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 005945 and Stic is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments 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 Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Nh Investment i.e., Nh Investment and Stic Investments go up and down completely randomly.
Pair Corralation between Nh Investment and Stic Investments
Assuming the 90 days trading horizon Nh Investment is expected to generate 1.24 times less return on investment than Stic Investments. But when comparing it to its historical volatility, Nh Investment And is 2.98 times less risky than Stic Investments. It trades about 0.12 of its potential returns per unit of risk. Stic Investments is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 602,993 in Stic Investments on August 31, 2024 and sell it today you would earn a total of 225,007 from holding Stic Investments or generate 37.32% 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. Stic Investments
Performance |
| Timeline |
| Nh Investment And |
| Stic Investments |
Nh Investment and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Stic Investments
The main advantage of trading using opposite Nh Investment and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. Solution Advanced Technology | Nh Investment vs. Busan Industrial Co | Nh Investment vs. Busan Ind |
| Stic Investments vs. Dongsin Engineering Construction | Stic Investments vs. Doosan Fuel Cell | Stic Investments vs. Daishin Balance 1 | Stic Investments vs. Total Soft Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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