Correlation Between Shinsegae Food and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Shinsegae Food 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 Shinsegae Food and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinsegae Food and Nh Investment And, you can compare the effects of market volatilities on Shinsegae Food 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 Shinsegae Food with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Food and Nh Investment.
Diversification Opportunities for Shinsegae Food and Nh Investment
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shinsegae and 005945 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food i.e., Shinsegae Food and Nh Investment go up and down completely randomly.
Pair Corralation between Shinsegae Food and Nh Investment
Assuming the 90 days trading horizon Shinsegae Food is expected to under-perform the Nh Investment. In addition to that, Shinsegae Food is 2.33 times more volatile than Nh Investment And. It trades about -0.04 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 821,439 in Nh Investment And on November 7, 2024 and sell it today you would earn a total of 454,561 from holding Nh Investment And or generate 55.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Food vs. Nh Investment And
Performance |
| Timeline |
| Shinsegae Food |
| Nh Investment And |
Shinsegae Food and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Food and Nh Investment
The main advantage of trading using opposite Shinsegae Food and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Food 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.| Shinsegae Food vs. Daejoo Electronic Materials | Shinsegae Food vs. Jahwa Electronics Co | Shinsegae Food vs. UJU Electronics Co | Shinsegae Food vs. Lotte Chilsung Beverage |
| Nh Investment vs. Ssangyong Information Communication | Nh Investment vs. Asiana Airlines | Nh Investment vs. Jeong Moon Information | Nh Investment vs. T3 Entertainment 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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