Correlation Between Nh Investment and Seoul Electronics
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Seoul Electronics 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 Seoul Electronics 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 Seoul Electronics Telecom, you can compare the effects of market volatilities on Nh Investment and Seoul Electronics 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 Seoul Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Seoul Electronics.
Diversification Opportunities for Nh Investment and Seoul Electronics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 005945 and Seoul is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Seoul Electronics Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoul Electronics Telecom 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 Seoul Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoul Electronics Telecom has no effect on the direction of Nh Investment i.e., Nh Investment and Seoul Electronics go up and down completely randomly.
Pair Corralation between Nh Investment and Seoul Electronics
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.32 times more return on investment than Seoul Electronics. However, Nh Investment And is 3.08 times less risky than Seoul Electronics. It trades about 0.05 of its potential returns per unit of risk. Seoul Electronics Telecom is currently generating about -0.36 per unit of risk. If you would invest 1,202,000 in Nh Investment And on September 1, 2024 and sell it today you would earn a total of 6,000 from holding Nh Investment And or generate 0.5% 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. Seoul Electronics Telecom
Performance |
| Timeline |
| Nh Investment And |
| Seoul Electronics Telecom |
Nh Investment and Seoul Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Seoul Electronics
The main advantage of trading using opposite Nh Investment and Seoul Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Seoul Electronics 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 Seoul Electronics will offset losses from the drop in Seoul Electronics' 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 |
| Seoul Electronics vs. Korea New Network | Seoul Electronics vs. ICD Co | Seoul Electronics vs. DYPNF CoLtd | Seoul Electronics vs. Busan Industrial Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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