Correlation Between Q Capital and NAU IB
Can any of the company-specific risk be diversified away by investing in both Q Capital and NAU IB 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 Q Capital and NAU IB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Q Capital Partners and NAU IB Capital, you can compare the effects of market volatilities on Q Capital and NAU IB 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 Q Capital with a short position of NAU IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Q Capital and NAU IB.
Diversification Opportunities for Q Capital and NAU IB
Good diversification
The 3 months correlation between 016600 and NAU is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Q Capital Partners and NAU IB Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAU IB Capital and Q Capital 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 Q Capital Partners are associated (or correlated) with NAU IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAU IB Capital has no effect on the direction of Q Capital i.e., Q Capital and NAU IB go up and down completely randomly.
Pair Corralation between Q Capital and NAU IB
Assuming the 90 days trading horizon Q Capital Partners is expected to generate 0.64 times more return on investment than NAU IB. However, Q Capital Partners is 1.57 times less risky than NAU IB. It trades about 0.21 of its potential returns per unit of risk. NAU IB Capital is currently generating about -0.06 per unit of risk. If you would invest 23,800 in Q Capital Partners on October 24, 2024 and sell it today you would earn a total of 3,700 from holding Q Capital Partners or generate 15.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Q Capital Partners vs. NAU IB Capital
Performance |
| Timeline |
| Q Capital Partners |
| NAU IB Capital |
Q Capital and NAU IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Q Capital and NAU IB
The main advantage of trading using opposite Q Capital and NAU IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Q Capital position performs unexpectedly, NAU IB 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 NAU IB will offset losses from the drop in NAU IB's long position.| Q Capital vs. Hankook Furniture Co | Q Capital vs. PJ Metal Co | Q Capital vs. Hyunwoo Industrial Co | Q Capital vs. Kukil Metal Co |
| NAU IB vs. Amogreentech Co | NAU IB vs. Daishin Information Communications | NAU IB vs. Wonbang Tech Co | NAU IB vs. Mobileleader CoLtd |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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