Correlation Between NICE Information and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both NICE Information and Koryo Credit 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 Koryo Credit 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 Koryo Credit Information, you can compare the effects of market volatilities on NICE Information and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Koryo Credit.
Diversification Opportunities for NICE Information and Koryo Credit
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NICE and Koryo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of NICE Information i.e., NICE Information and Koryo Credit go up and down completely randomly.
Pair Corralation between NICE Information and Koryo Credit
Assuming the 90 days trading horizon NICE Information Service is expected to generate 1.99 times more return on investment than Koryo Credit. However, NICE Information is 1.99 times more volatile than Koryo Credit Information. It trades about 0.16 of its potential returns per unit of risk. Koryo Credit Information is currently generating about 0.24 per unit of risk. If you would invest 1,113,000 in NICE Information Service on September 1, 2024 and sell it today you would earn a total of 93,000 from holding NICE Information Service or generate 8.36% 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. Koryo Credit Information
Performance |
| Timeline |
| NICE Information Service |
| Koryo Credit Information |
NICE Information and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Koryo Credit
The main advantage of trading using opposite NICE Information and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| NICE Information vs. Sangshin Electronics Co | NICE Information vs. LG Electronics Pfd | NICE Information vs. Sunny Electronics Corp | NICE Information vs. Daejoo Electronic Materials |
| Koryo Credit vs. Hanwha InvestmentSecurities Co | Koryo Credit vs. Hyundai Home Shopping | Koryo Credit vs. SBI Investment KOREA | Koryo Credit vs. Cuckoo Homesys 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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