Correlation Between Nh Investment and Lotte Rental
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Lotte Rental 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 Lotte Rental 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 Lotte Rental Co, you can compare the effects of market volatilities on Nh Investment and Lotte Rental 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 Lotte Rental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Lotte Rental.
Diversification Opportunities for Nh Investment and Lotte Rental
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between 005945 and Lotte is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Lotte Rental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Rental 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 Lotte Rental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Rental has no effect on the direction of Nh Investment i.e., Nh Investment and Lotte Rental go up and down completely randomly.
Pair Corralation between Nh Investment and Lotte Rental
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.55 times more return on investment than Lotte Rental. However, Nh Investment And is 1.83 times less risky than Lotte Rental. It trades about 0.13 of its potential returns per unit of risk. Lotte Rental Co is currently generating about 0.02 per unit of risk. If you would invest 814,957 in Nh Investment And on October 29, 2024 and sell it today you would earn a total of 465,043 from holding Nh Investment And or generate 57.06% 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. Lotte Rental Co
Performance |
| Timeline |
| Nh Investment And |
| Lotte Rental |
Nh Investment and Lotte Rental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Lotte Rental
The main advantage of trading using opposite Nh Investment and Lotte Rental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Lotte Rental 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 Lotte Rental will offset losses from the drop in Lotte Rental's long position.| Nh Investment vs. Shinsegae Food | Nh Investment vs. Alton Sports CoLtd | Nh Investment vs. Playgram Co | Nh Investment vs. Daiyang Metal Co |
| Lotte Rental vs. FOODWELL Co | Lotte Rental vs. Hankukpackage Co | Lotte Rental vs. Samyang Foods Co | Lotte Rental vs. ITM Semiconductor 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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