Correlation Between Nh Investment and Shinhan Inverse
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Shinhan Inverse 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 Shinhan Inverse 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 Shinhan Inverse Copper, you can compare the effects of market volatilities on Nh Investment and Shinhan Inverse 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 Shinhan Inverse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Shinhan Inverse.
Diversification Opportunities for Nh Investment and Shinhan Inverse
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 005945 and Shinhan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Shinhan Inverse Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Inverse Copper 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 Shinhan Inverse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Inverse Copper has no effect on the direction of Nh Investment i.e., Nh Investment and Shinhan Inverse go up and down completely randomly.
Pair Corralation between Nh Investment and Shinhan Inverse
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.64 times more return on investment than Shinhan Inverse. However, Nh Investment And is 1.56 times less risky than Shinhan Inverse. It trades about 0.1 of its potential returns per unit of risk. Shinhan Inverse Copper is currently generating about 0.01 per unit of risk. If you would invest 836,257 in Nh Investment And on October 12, 2024 and sell it today you would earn a total of 380,743 from holding Nh Investment And or generate 45.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.43% |
| Values | Daily Returns |
Nh Investment And vs. Shinhan Inverse Copper
Performance |
| Timeline |
| Nh Investment And |
| Shinhan Inverse Copper |
Nh Investment and Shinhan Inverse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nh Investment and Shinhan Inverse
The main advantage of trading using opposite Nh Investment and Shinhan Inverse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Shinhan Inverse 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 Shinhan Inverse will offset losses from the drop in Shinhan Inverse's long position.| Nh Investment vs. CG Hi Tech | Nh Investment vs. Vina Technology Co | Nh Investment vs. Digital Imaging Technology | Nh Investment vs. HB Technology TD |
| Shinhan Inverse vs. Nh Investment And | Shinhan Inverse vs. Daishin Information Communications | Shinhan Inverse vs. E Investment Development | Shinhan Inverse vs. KTB Investment Securities |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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