Correlation Between Nh Investment and BGF Retail
Can any of the company-specific risk be diversified away by investing in both Nh Investment and BGF Retail 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 BGF Retail 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 BGF Retail Co, you can compare the effects of market volatilities on Nh Investment and BGF Retail 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 BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and BGF Retail.
Diversification Opportunities for Nh Investment and BGF Retail
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 005945 and BGF is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail 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 BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of Nh Investment i.e., Nh Investment and BGF Retail go up and down completely randomly.
Pair Corralation between Nh Investment and BGF Retail
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.66 times more return on investment than BGF Retail. However, Nh Investment And is 1.51 times less risky than BGF Retail. It trades about 0.04 of its potential returns per unit of risk. BGF Retail Co is currently generating about -0.13 per unit of risk. If you would invest 1,213,000 in Nh Investment And on September 29, 2024 and sell it today you would earn a total of 12,000 from holding Nh Investment And or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nh Investment And vs. BGF Retail Co
Performance |
| Timeline |
| Nh Investment And |
| BGF Retail |
Nh Investment and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and BGF Retail
The main advantage of trading using opposite Nh Investment and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, BGF Retail 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 BGF Retail will offset losses from the drop in BGF Retail's long position.| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. Company K Partners | Nh Investment vs. FnGuide | Nh Investment vs. DSC Investment |
| BGF Retail vs. Woori Financial Group | BGF Retail vs. Jb Financial | BGF Retail vs. Nh Investment And | BGF Retail vs. Kumho Petro Chemical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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