Correlation Between Youngsin Metal and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Youngsin Metal 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 Youngsin Metal and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Youngsin Metal Industrial and Nh Investment And, you can compare the effects of market volatilities on Youngsin Metal 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 Youngsin Metal with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Youngsin Metal and Nh Investment.
Diversification Opportunities for Youngsin Metal and Nh Investment
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Youngsin and 005945 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Youngsin Metal Industrial 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 Youngsin Metal 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 Youngsin Metal Industrial 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 Youngsin Metal i.e., Youngsin Metal and Nh Investment go up and down completely randomly.
Pair Corralation between Youngsin Metal and Nh Investment
Assuming the 90 days trading horizon Youngsin Metal Industrial is expected to generate 6.0 times more return on investment than Nh Investment. However, Youngsin Metal is 6.0 times more volatile than Nh Investment And. It trades about 0.06 of its potential returns per unit of risk. Nh Investment And is currently generating about 0.06 per unit of risk. If you would invest 218,500 in Youngsin Metal Industrial on October 16, 2024 and sell it today you would earn a total of 7,500 from holding Youngsin Metal Industrial or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Youngsin Metal Industrial vs. Nh Investment And
Performance |
| Timeline |
| Youngsin Metal Industrial |
| Nh Investment And |
Youngsin Metal and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Youngsin Metal and Nh Investment
The main advantage of trading using opposite Youngsin Metal and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Youngsin Metal 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.| Youngsin Metal vs. Kisan Telecom Co | Youngsin Metal vs. V One Tech Co | Youngsin Metal vs. CU Tech Corp | Youngsin Metal vs. SS TECH |
| Nh Investment vs. Vissem Electronics Co | Nh Investment vs. Haitai Confectionery Foods | Nh Investment vs. Lotte Chilsung Beverage | Nh Investment vs. Hankukpackage Co |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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