Correlation Between Nh Investment and Lion Chemtech
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Lion Chemtech 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 Lion Chemtech 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 Lion Chemtech Co, you can compare the effects of market volatilities on Nh Investment and Lion Chemtech 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 Lion Chemtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Lion Chemtech.
Diversification Opportunities for Nh Investment and Lion Chemtech
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 005945 and Lion is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Lion Chemtech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Chemtech 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 Lion Chemtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Chemtech has no effect on the direction of Nh Investment i.e., Nh Investment and Lion Chemtech go up and down completely randomly.
Pair Corralation between Nh Investment and Lion Chemtech
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.41 times more return on investment than Lion Chemtech. However, Nh Investment And is 2.41 times less risky than Lion Chemtech. It trades about 0.13 of its potential returns per unit of risk. Lion Chemtech Co is currently generating about -0.07 per unit of risk. If you would invest 968,687 in Nh Investment And on August 25, 2024 and sell it today you would earn a total of 231,313 from holding Nh Investment And or generate 23.88% 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. Lion Chemtech Co
Performance |
| Timeline |
| Nh Investment And |
| Lion Chemtech |
Nh Investment and Lion Chemtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Lion Chemtech
The main advantage of trading using opposite Nh Investment and Lion Chemtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Lion Chemtech 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 Lion Chemtech will offset losses from the drop in Lion Chemtech's long position.| Nh Investment vs. Fine Besteel Co | Nh Investment vs. Dongil Steel Co | Nh Investment vs. LG Electronics Pfd | Nh Investment vs. Wonil Special Steel |
| Lion Chemtech vs. Nature and Environment | Lion Chemtech vs. Cheryong Industrial CoLtd | Lion Chemtech vs. IL Science 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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