Correlation Between Nh Investment and Iljin HySolus
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Iljin HySolus 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 Iljin HySolus 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 Iljin HySolus Co, you can compare the effects of market volatilities on Nh Investment and Iljin HySolus 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 Iljin HySolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Iljin HySolus.
Diversification Opportunities for Nh Investment and Iljin HySolus
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005945 and Iljin is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Iljin HySolus Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin HySolus 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 Iljin HySolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin HySolus has no effect on the direction of Nh Investment i.e., Nh Investment and Iljin HySolus go up and down completely randomly.
Pair Corralation between Nh Investment and Iljin HySolus
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.35 times more return on investment than Iljin HySolus. However, Nh Investment And is 2.84 times less risky than Iljin HySolus. It trades about 0.11 of its potential returns per unit of risk. Iljin HySolus Co is currently generating about -0.04 per unit of risk. If you would invest 808,983 in Nh Investment And on September 12, 2024 and sell it today you would earn a total of 401,017 from holding Nh Investment And or generate 49.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Nh Investment And vs. Iljin HySolus Co
Performance |
| Timeline |
| Nh Investment And |
| Iljin HySolus |
Nh Investment and Iljin HySolus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Iljin HySolus
The main advantage of trading using opposite Nh Investment and Iljin HySolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Iljin HySolus 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 Iljin HySolus will offset losses from the drop in Iljin HySolus' long position.| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. DSC Investment | Nh Investment vs. Solution Advanced Technology | Nh Investment vs. Busan Industrial Co |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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