Correlation Between Ni Steel and Dreamus
Can any of the company-specific risk be diversified away by investing in both Ni Steel and Dreamus 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 Ni Steel and Dreamus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ni Steel and Dreamus Company, you can compare the effects of market volatilities on Ni Steel and Dreamus 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 Ni Steel with a short position of Dreamus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ni Steel and Dreamus.
Diversification Opportunities for Ni Steel and Dreamus
Very weak diversification
The 3 months correlation between 008260 and Dreamus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ni Steel and Dreamus Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreamus Company and Ni Steel 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 Ni Steel are associated (or correlated) with Dreamus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreamus Company has no effect on the direction of Ni Steel i.e., Ni Steel and Dreamus go up and down completely randomly.
Pair Corralation between Ni Steel and Dreamus
Assuming the 90 days trading horizon Ni Steel is expected to generate 0.54 times more return on investment than Dreamus. However, Ni Steel is 1.87 times less risky than Dreamus. It trades about -0.01 of its potential returns per unit of risk. Dreamus Company is currently generating about -0.07 per unit of risk. If you would invest 339,500 in Ni Steel on January 24, 2025 and sell it today you would lose (2,500) from holding Ni Steel or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ni Steel vs. Dreamus Company
Performance |
| Timeline |
| Ni Steel |
| Dreamus Company |
Ni Steel and Dreamus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ni Steel and Dreamus
The main advantage of trading using opposite Ni Steel and Dreamus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ni Steel position performs unexpectedly, Dreamus 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 Dreamus will offset losses from the drop in Dreamus' long position.| Ni Steel vs. Cube Entertainment | Ni Steel vs. Automobile Pc | Ni Steel vs. Mobile Appliance | Ni Steel vs. DataSolution |
| Dreamus vs. Shinil Industrial Co | Dreamus vs. LG Chemicals | Dreamus vs. GS Retail Co | Dreamus vs. Dongkook Industrial 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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