Correlation Between Nh Investment and Kukil Metal
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Kukil Metal 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 Kukil Metal 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 Kukil Metal Co, you can compare the effects of market volatilities on Nh Investment and Kukil Metal 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 Kukil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Kukil Metal.
Diversification Opportunities for Nh Investment and Kukil Metal
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between 005945 and Kukil is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Kukil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kukil Metal 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 Kukil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kukil Metal has no effect on the direction of Nh Investment i.e., Nh Investment and Kukil Metal go up and down completely randomly.
Pair Corralation between Nh Investment and Kukil Metal
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.31 times more return on investment than Kukil Metal. However, Nh Investment And is 3.2 times less risky than Kukil Metal. It trades about 0.05 of its potential returns per unit of risk. Kukil Metal Co is currently generating about -0.31 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. Kukil Metal Co
Performance |
| Timeline |
| Nh Investment And |
| Kukil Metal |
Nh Investment and Kukil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Kukil Metal
The main advantage of trading using opposite Nh Investment and Kukil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Kukil Metal 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 Kukil Metal will offset losses from the drop in Kukil Metal's 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 |
| Kukil Metal vs. Keum Kang Steel | Kukil Metal vs. Tplex Co | Kukil Metal vs. Gyeongnam Steel Co | Kukil Metal vs. Jeil Steel Mfg |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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