Correlation Between KyungIn Electronics and NH Investment
Can any of the company-specific risk be diversified away by investing in both KyungIn Electronics 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 KyungIn Electronics and NH Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KyungIn Electronics Co and NH Investment Securities, you can compare the effects of market volatilities on KyungIn Electronics 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 KyungIn Electronics with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KyungIn Electronics and NH Investment.
Diversification Opportunities for KyungIn Electronics and NH Investment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between KyungIn and 005940 is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding KyungIn Electronics Co and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities and KyungIn Electronics 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 KyungIn Electronics 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 Securities has no effect on the direction of KyungIn Electronics i.e., KyungIn Electronics and NH Investment go up and down completely randomly.
Pair Corralation between KyungIn Electronics and NH Investment
Assuming the 90 days trading horizon KyungIn Electronics Co is expected to generate 0.89 times more return on investment than NH Investment. However, KyungIn Electronics Co is 1.13 times less risky than NH Investment. It trades about 0.13 of its potential returns per unit of risk. NH Investment Securities is currently generating about -0.06 per unit of risk. If you would invest 2,085,000 in KyungIn Electronics Co on August 28, 2024 and sell it today you would earn a total of 65,000 from holding KyungIn Electronics Co or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KyungIn Electronics Co vs. NH Investment Securities
Performance |
| Timeline |
| KyungIn Electronics |
| NH Investment Securities |
KyungIn Electronics and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KyungIn Electronics and NH Investment
The main advantage of trading using opposite KyungIn Electronics and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KyungIn Electronics 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.| KyungIn Electronics vs. AptaBio Therapeutics | KyungIn Electronics vs. Daewoo SBI SPAC | KyungIn Electronics vs. Dream Security co | KyungIn Electronics vs. Microfriend |
| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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