Correlation Between Nh Investment and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Sungchang Autotech 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 Sungchang Autotech 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 Sungchang Autotech Co, you can compare the effects of market volatilities on Nh Investment and Sungchang Autotech 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 Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Sungchang Autotech.
Diversification Opportunities for Nh Investment and Sungchang Autotech
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 005945 and Sungchang is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech 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 Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of Nh Investment i.e., Nh Investment and Sungchang Autotech go up and down completely randomly.
Pair Corralation between Nh Investment and Sungchang Autotech
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.42 times more return on investment than Sungchang Autotech. However, Nh Investment And is 2.4 times less risky than Sungchang Autotech. It trades about 0.13 of its potential returns per unit of risk. Sungchang Autotech Co is currently generating about -0.05 per unit of risk. If you would invest 968,687 in Nh Investment And on August 25, 2024 and sell it today you would earn a total of 231,313 from holding Nh Investment And or generate 23.88% 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. Sungchang Autotech Co
Performance |
| Timeline |
| Nh Investment And |
| Sungchang Autotech |
Nh Investment and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Sungchang Autotech
The main advantage of trading using opposite Nh Investment and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| Nh Investment vs. Fine Besteel Co | Nh Investment vs. Dongil Steel Co | Nh Investment vs. LG Electronics Pfd | Nh Investment vs. Wonil Special Steel |
| Sungchang Autotech vs. Busan Industrial Co | Sungchang Autotech vs. Busan Ind | Sungchang Autotech vs. Mirae Asset Daewoo | Sungchang Autotech vs. UNISEM 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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