Correlation Between Daelim Trading and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Nh Investment 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 Daelim Trading and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Trading Co and Nh Investment And, you can compare the effects of market volatilities on Daelim Trading and Nh Investment 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 Daelim Trading with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Nh Investment.
Diversification Opportunities for Daelim Trading and Nh Investment
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daelim and 005945 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Nh Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nh Investment And and Daelim Trading 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 Daelim Trading Co are associated (or correlated) with Nh Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nh Investment And has no effect on the direction of Daelim Trading i.e., Daelim Trading and Nh Investment go up and down completely randomly.
Pair Corralation between Daelim Trading and Nh Investment
Assuming the 90 days trading horizon Daelim Trading Co is expected to generate 5.62 times more return on investment than Nh Investment. However, Daelim Trading is 5.62 times more volatile than Nh Investment And. It trades about 0.07 of its potential returns per unit of risk. Nh Investment And is currently generating about 0.05 per unit of risk. If you would invest 267,500 in Daelim Trading Co on September 1, 2024 and sell it today you would earn a total of 10,000 from holding Daelim Trading Co or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. Nh Investment And
Performance |
| Timeline |
| Daelim Trading |
| Nh Investment And |
Daelim Trading and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Nh Investment
The main advantage of trading using opposite Daelim Trading and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Nh Investment 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 Nh Investment will offset losses from the drop in Nh Investment's long position.| Daelim Trading vs. AptaBio Therapeutics | Daelim Trading vs. Daewoo SBI SPAC | Daelim Trading vs. Dream Security co | Daelim Trading vs. Microfriend |
| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. Solution Advanced Technology | Nh Investment vs. Busan Industrial Co | Nh Investment vs. Busan Ind |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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