Correlation Between Nh Investment and People Technology
Can any of the company-specific risk be diversified away by investing in both Nh Investment and People Technology 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 People Technology 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 People Technology, you can compare the effects of market volatilities on Nh Investment and People Technology 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 People Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and People Technology.
Diversification Opportunities for Nh Investment and People Technology
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 005945 and People is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and People Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on People Technology 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 People Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of People Technology has no effect on the direction of Nh Investment i.e., Nh Investment and People Technology go up and down completely randomly.
Pair Corralation between Nh Investment and People Technology
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.35 times more return on investment than People Technology. However, Nh Investment And is 2.85 times less risky than People Technology. It trades about 0.13 of its potential returns per unit of risk. People Technology is currently generating about -0.13 per unit of risk. If you would invest 1,199,000 in Nh Investment And on October 25, 2024 and sell it today you would earn a total of 61,000 from holding Nh Investment And or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. People Technology
Performance |
| Timeline |
| Nh Investment And |
| People Technology |
Nh Investment and People Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and People Technology
The main advantage of trading using opposite Nh Investment and People Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, People Technology 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 People Technology will offset losses from the drop in People Technology's long position.| Nh Investment vs. LG Chemicals | Nh Investment vs. Miwon Chemicals Co | Nh Investment vs. Korea Steel Co | Nh Investment vs. Seah Steel Corp |
| People Technology vs. Stic Investments | People Technology vs. SBI Investment KOREA | People Technology vs. Atinum Investment Co | People Technology vs. Nh Investment And |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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