Correlation Between Nh Investment and BNK Financial
Can any of the company-specific risk be diversified away by investing in both Nh Investment and BNK Financial 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 BNK Financial 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 BNK Financial Group, you can compare the effects of market volatilities on Nh Investment and BNK Financial 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 BNK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and BNK Financial.
Diversification Opportunities for Nh Investment and BNK Financial
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 005945 and BNK is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and BNK Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNK Financial Group 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 BNK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNK Financial Group has no effect on the direction of Nh Investment i.e., Nh Investment and BNK Financial go up and down completely randomly.
Pair Corralation between Nh Investment and BNK Financial
Assuming the 90 days trading horizon Nh Investment is expected to generate 22.05 times less return on investment than BNK Financial. But when comparing it to its historical volatility, Nh Investment And is 3.48 times less risky than BNK Financial. It trades about 0.05 of its potential returns per unit of risk. BNK Financial Group is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 944,000 in BNK Financial Group on September 1, 2024 and sell it today you would earn a total of 112,000 from holding BNK Financial Group or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. BNK Financial Group
Performance |
| Timeline |
| Nh Investment And |
| BNK Financial Group |
Nh Investment and BNK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and BNK Financial
The main advantage of trading using opposite Nh Investment and BNK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, BNK Financial 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 BNK Financial will offset losses from the drop in BNK Financial's long position.| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. Solution Advanced Technology | Nh Investment vs. Busan Industrial Co | Nh Investment vs. Busan Ind |
| BNK Financial vs. Samsung Electronics Co | BNK Financial vs. Samsung Electronics Co | BNK Financial vs. KB Financial Group | BNK Financial vs. Shinhan Financial Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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