Correlation Between Shinsegae Information and NH Investment
Can any of the company-specific risk be diversified away by investing in both Shinsegae Information 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 Information 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 Information Communication and NH Investment Securities, you can compare the effects of market volatilities on Shinsegae Information 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 Information with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinsegae Information and NH Investment.
Diversification Opportunities for Shinsegae Information and NH Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shinsegae and 005940 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shinsegae Information Communic and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities and Shinsegae 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 Shinsegae Information Communication 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 Securities has no effect on the direction of Shinsegae Information i.e., Shinsegae Information and NH Investment go up and down completely randomly.
Pair Corralation between Shinsegae Information and NH Investment
Assuming the 90 days trading horizon Shinsegae Information Communication is expected to under-perform the NH Investment. In addition to that, Shinsegae Information is 1.22 times more volatile than NH Investment Securities. It trades about -0.22 of its total potential returns per unit of risk. NH Investment Securities is currently generating about -0.07 per unit of volatility. If you would invest 1,362,000 in NH Investment Securities on August 28, 2024 and sell it today you would lose (29,000) from holding NH Investment Securities or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinsegae Information Communic vs. NH Investment Securities
Performance |
| Timeline |
| Shinsegae Information |
| NH Investment Securities |
Shinsegae Information and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinsegae Information and NH Investment
The main advantage of trading using opposite Shinsegae Information and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinsegae Information 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 Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
| NH Investment vs. LG Display Co | NH Investment vs. Nasmedia Co | NH Investment vs. PlayD Co | NH Investment vs. KIWI Media Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |