Correlation Between Myoung Shin and NH Investment
Can any of the company-specific risk be diversified away by investing in both Myoung Shin 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 Myoung Shin and NH Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myoung Shin Industrial and NH Investment Securities, you can compare the effects of market volatilities on Myoung Shin 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 Myoung Shin with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and NH Investment.
Diversification Opportunities for Myoung Shin and NH Investment
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Myoung and 005940 is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin Industrial 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 Myoung Shin 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 Myoung Shin 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 Securities has no effect on the direction of Myoung Shin i.e., Myoung Shin and NH Investment go up and down completely randomly.
Pair Corralation between Myoung Shin and NH Investment
Assuming the 90 days trading horizon Myoung Shin Industrial is expected to generate 1.87 times more return on investment than NH Investment. However, Myoung Shin is 1.87 times more volatile than NH Investment Securities. It trades about 0.11 of its potential returns per unit of risk. NH Investment Securities is currently generating about 0.02 per unit of risk. If you would invest 1,023,000 in Myoung Shin Industrial on October 10, 2024 and sell it today you would earn a total of 52,000 from holding Myoung Shin Industrial or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Myoung Shin Industrial vs. NH Investment Securities
Performance |
| Timeline |
| Myoung Shin Industrial |
| NH Investment Securities |
Myoung Shin and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myoung Shin and NH Investment
The main advantage of trading using opposite Myoung Shin and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myoung Shin 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.| Myoung Shin vs. Shinsegae Food | Myoung Shin vs. Osang Healthcare Co,Ltd | Myoung Shin vs. FoodNamoo | Myoung Shin vs. LG Household Healthcare |
| NH Investment vs. Ilji Technology Co | NH Investment vs. Daou Technology | NH Investment vs. Hwangkum Steel Technology | NH Investment vs. ENF Technology 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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