Correlation Between Nepes and EASY HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Nepes and EASY HOLDINGS 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 Nepes and EASY HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nepes and EASY HOLDINGS Co, you can compare the effects of market volatilities on Nepes and EASY HOLDINGS 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 Nepes with a short position of EASY HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nepes and EASY HOLDINGS.
Diversification Opportunities for Nepes and EASY HOLDINGS
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nepes and EASY is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nepes and EASY HOLDINGS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EASY HOLDINGS and Nepes 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 Nepes are associated (or correlated) with EASY HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EASY HOLDINGS has no effect on the direction of Nepes i.e., Nepes and EASY HOLDINGS go up and down completely randomly.
Pair Corralation between Nepes and EASY HOLDINGS
Assuming the 90 days trading horizon Nepes is expected to under-perform the EASY HOLDINGS. In addition to that, Nepes is 2.23 times more volatile than EASY HOLDINGS Co. It trades about -0.09 of its total potential returns per unit of risk. EASY HOLDINGS Co is currently generating about 0.03 per unit of volatility. If you would invest 261,500 in EASY HOLDINGS Co on August 25, 2024 and sell it today you would earn a total of 26,000 from holding EASY HOLDINGS Co or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Nepes vs. EASY HOLDINGS Co
Performance |
| Timeline |
| Nepes |
| EASY HOLDINGS |
Nepes and EASY HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nepes and EASY HOLDINGS
The main advantage of trading using opposite Nepes and EASY HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nepes position performs unexpectedly, EASY HOLDINGS 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 EASY HOLDINGS will offset losses from the drop in EASY HOLDINGS's long position.| Nepes vs. Dongjin Semichem Co | Nepes vs. SFA Semicon Co | Nepes vs. Seoul Semiconductor Co | Nepes vs. EO Technics 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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