Correlation Between Nh Investment and BHI
Can any of the company-specific risk be diversified away by investing in both Nh Investment and BHI 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 BHI 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 BHI Co, you can compare the effects of market volatilities on Nh Investment and BHI 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 BHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and BHI.
Diversification Opportunities for Nh Investment and BHI
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between 005945 and BHI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and BHI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHI Co 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 BHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHI Co has no effect on the direction of Nh Investment i.e., Nh Investment and BHI go up and down completely randomly.
Pair Corralation between Nh Investment and BHI
Assuming the 90 days trading horizon Nh Investment is expected to generate 3.38 times less return on investment than BHI. But when comparing it to its historical volatility, Nh Investment And is 5.25 times less risky than BHI. It trades about 0.1 of its potential returns per unit of risk. BHI Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 682,000 in BHI Co on October 17, 2024 and sell it today you would earn a total of 1,059,000 from holding BHI Co or generate 155.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. BHI Co
Performance |
| Timeline |
| Nh Investment And |
| BHI Co |
Nh Investment and BHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and BHI
The main advantage of trading using opposite Nh Investment and BHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, BHI 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 BHI will offset losses from the drop in BHI's long position.| Nh Investment vs. HB Technology TD | Nh Investment vs. Digital Imaging Technology | Nh Investment vs. AeroSpace Technology of | Nh Investment vs. NewFlex Technology 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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