Correlation Between NICE Information and Korea Refract
Can any of the company-specific risk be diversified away by investing in both NICE Information and Korea Refract 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 NICE Information and Korea Refract into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Information Service and Korea Refract, you can compare the effects of market volatilities on NICE Information and Korea Refract 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 NICE Information with a short position of Korea Refract. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Korea Refract.
Diversification Opportunities for NICE Information and Korea Refract
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NICE and Korea is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service and Korea Refract in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Refract and NICE Information 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 NICE Information Service are associated (or correlated) with Korea Refract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Refract has no effect on the direction of NICE Information i.e., NICE Information and Korea Refract go up and down completely randomly.
Pair Corralation between NICE Information and Korea Refract
Assuming the 90 days trading horizon NICE Information Service is expected to generate 1.13 times more return on investment than Korea Refract. However, NICE Information is 1.13 times more volatile than Korea Refract. It trades about 0.28 of its potential returns per unit of risk. Korea Refract is currently generating about -0.05 per unit of risk. If you would invest 1,043,000 in NICE Information Service on September 14, 2024 and sell it today you would earn a total of 135,000 from holding NICE Information Service or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NICE Information Service vs. Korea Refract
Performance |
| Timeline |
| NICE Information Service |
| Korea Refract |
NICE Information and Korea Refract Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Korea Refract
The main advantage of trading using opposite NICE Information and Korea Refract positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information position performs unexpectedly, Korea Refract 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 Korea Refract will offset losses from the drop in Korea Refract's long position.| NICE Information vs. AptaBio Therapeutics | NICE Information vs. Daewoo SBI SPAC | NICE Information vs. Dream Security co | NICE Information vs. Microfriend |
| Korea Refract vs. Dongbu Insurance Co | Korea Refract vs. Korea Information Engineering | Korea Refract vs. Korean Reinsurance Co | Korea Refract vs. NICE Information Service |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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