Correlation Between GS Retail and NH SPAC
Can any of the company-specific risk be diversified away by investing in both GS Retail and NH SPAC 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 GS Retail and NH SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Retail Co and NH SPAC 8, you can compare the effects of market volatilities on GS Retail and NH SPAC 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 GS Retail with a short position of NH SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Retail and NH SPAC.
Diversification Opportunities for GS Retail and NH SPAC
Weak diversification
The 3 months correlation between 007070 and 225570 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding GS Retail Co and NH SPAC 8 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH SPAC 8 and GS Retail 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 GS Retail Co are associated (or correlated) with NH SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH SPAC 8 has no effect on the direction of GS Retail i.e., GS Retail and NH SPAC go up and down completely randomly.
Pair Corralation between GS Retail and NH SPAC
Assuming the 90 days trading horizon GS Retail Co is expected to under-perform the NH SPAC. In addition to that, GS Retail is 1.29 times more volatile than NH SPAC 8. It trades about -0.36 of its total potential returns per unit of risk. NH SPAC 8 is currently generating about 0.0 per unit of volatility. If you would invest 1,356,000 in NH SPAC 8 on October 25, 2024 and sell it today you would lose (1,000.00) from holding NH SPAC 8 or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Retail Co vs. NH SPAC 8
Performance |
| Timeline |
| GS Retail |
| NH SPAC 8 |
GS Retail and NH SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Retail and NH SPAC
The main advantage of trading using opposite GS Retail and NH SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Retail position performs unexpectedly, NH SPAC 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 SPAC will offset losses from the drop in NH SPAC's long position.| GS Retail vs. KB Financial Group | GS Retail vs. Shinhan Financial Group | GS Retail vs. Hana Financial | GS Retail vs. Woori Financial Group |
| NH SPAC vs. Daiyang Metal Co | NH SPAC vs. Heungkuk Metaltech CoLtd | NH SPAC vs. Samsung Life Insurance | NH SPAC vs. Shinhan Inverse Silver |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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