Correlation Between Nh Investment and Global Standard
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Global Standard 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 Global Standard 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 Global Standard Technology, you can compare the effects of market volatilities on Nh Investment and Global Standard 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 Global Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Global Standard.
Diversification Opportunities for Nh Investment and Global Standard
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 005945 and Global is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Global Standard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Standard Tech 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 Global Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Standard Tech has no effect on the direction of Nh Investment i.e., Nh Investment and Global Standard go up and down completely randomly.
Pair Corralation between Nh Investment and Global Standard
Assuming the 90 days trading horizon Nh Investment is expected to generate 3.05 times less return on investment than Global Standard. But when comparing it to its historical volatility, Nh Investment And is 4.69 times less risky than Global Standard. It trades about 0.56 of its potential returns per unit of risk. Global Standard Technology is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,674,000 in Global Standard Technology on October 31, 2024 and sell it today you would earn a total of 275,000 from holding Global Standard Technology or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. Global Standard Technology
Performance |
| Timeline |
| Nh Investment And |
| Global Standard Tech |
Nh Investment and Global Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Global Standard
The main advantage of trading using opposite Nh Investment and Global Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Global Standard 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 Global Standard will offset losses from the drop in Global Standard's long position.| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. Company K Partners | Nh Investment vs. FnGuide | Nh Investment vs. DSC Investment |
| Global Standard vs. Kukil Metal Co | Global Standard vs. Miwon Chemical | Global Standard vs. Youngsin Metal Industrial | Global Standard vs. TK Chemical |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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