Correlation Between Nh Investment and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food, you can compare the effects of market volatilities on Nh Investment and Shinsegae Food 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 Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Shinsegae Food.
Diversification Opportunities for Nh Investment and Shinsegae Food
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005945 and Shinsegae is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food 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 Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Nh Investment i.e., Nh Investment and Shinsegae Food go up and down completely randomly.
Pair Corralation between Nh Investment and Shinsegae Food
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.66 times more return on investment than Shinsegae Food. However, Nh Investment And is 1.51 times less risky than Shinsegae Food. It trades about 0.06 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.04 per unit of risk. If you would invest 1,192,000 in Nh Investment And on September 18, 2024 and sell it today you would earn a total of 18,000 from holding Nh Investment And or generate 1.51% 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. Shinsegae Food
Performance |
| Timeline |
| Nh Investment And |
| Shinsegae Food |
Nh Investment and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Shinsegae Food
The main advantage of trading using opposite Nh Investment and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food'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 |
| Shinsegae Food vs. Daou Data Corp | Shinsegae Food vs. Solution Advanced Technology | Shinsegae Food vs. Busan Industrial Co | Shinsegae Food vs. Busan Ind |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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