Correlation Between Hankuk Steel and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Hankuk Steel 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 Hankuk Steel and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankuk Steel Wire and Nh Investment And, you can compare the effects of market volatilities on Hankuk Steel 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 Hankuk Steel with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankuk Steel and Nh Investment.
Diversification Opportunities for Hankuk Steel and Nh Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hankuk and 005945 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hankuk Steel Wire 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 Hankuk 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 Hankuk Steel Wire 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 Hankuk Steel i.e., Hankuk Steel and Nh Investment go up and down completely randomly.
Pair Corralation between Hankuk Steel and Nh Investment
Assuming the 90 days trading horizon Hankuk Steel is expected to generate 11.29 times less return on investment than Nh Investment. In addition to that, Hankuk Steel is 2.34 times more volatile than Nh Investment And. It trades about 0.0 of its total potential returns per unit of risk. Nh Investment And is currently generating about 0.12 per unit of volatility. If you would invest 873,300 in Nh Investment And on September 12, 2024 and sell it today you would earn a total of 336,700 from holding Nh Investment And or generate 38.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankuk Steel Wire vs. Nh Investment And
Performance |
| Timeline |
| Hankuk Steel Wire |
| Nh Investment And |
Hankuk Steel and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankuk Steel and Nh Investment
The main advantage of trading using opposite Hankuk Steel and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankuk Steel 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.| Hankuk Steel vs. LG Chemicals | Hankuk Steel vs. POSCO Holdings | Hankuk Steel vs. Hanwha Solutions | Hankuk Steel vs. Lotte Chemical Corp |
| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. DSC Investment | Nh Investment vs. Solution Advanced Technology | Nh Investment vs. Busan 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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