Correlation Between Osang Healthcare and Nable Communications
Can any of the company-specific risk be diversified away by investing in both Osang Healthcare and Nable Communications 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 Osang Healthcare and Nable Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osang Healthcare Co,Ltd and Nable Communications, you can compare the effects of market volatilities on Osang Healthcare and Nable Communications 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 Osang Healthcare with a short position of Nable Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osang Healthcare and Nable Communications.
Diversification Opportunities for Osang Healthcare and Nable Communications
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Osang and Nable is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Osang Healthcare Co,Ltd and Nable Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nable Communications and Osang Healthcare 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 Osang Healthcare Co,Ltd are associated (or correlated) with Nable Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nable Communications has no effect on the direction of Osang Healthcare i.e., Osang Healthcare and Nable Communications go up and down completely randomly.
Pair Corralation between Osang Healthcare and Nable Communications
Assuming the 90 days trading horizon Osang Healthcare Co,Ltd is expected to under-perform the Nable Communications. In addition to that, Osang Healthcare is 2.56 times more volatile than Nable Communications. It trades about -0.05 of its total potential returns per unit of risk. Nable Communications is currently generating about -0.02 per unit of volatility. If you would invest 782,000 in Nable Communications on October 30, 2024 and sell it today you would lose (141,000) from holding Nable Communications or give up 18.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.4% |
| Values | Daily Returns |
Osang Healthcare Co,Ltd vs. Nable Communications
Performance |
| Timeline |
| Osang Healthcare Co,Ltd |
| Nable Communications |
Osang Healthcare and Nable Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osang Healthcare and Nable Communications
The main advantage of trading using opposite Osang Healthcare and Nable Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osang Healthcare position performs unexpectedly, Nable Communications 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 Nable Communications will offset losses from the drop in Nable Communications' long position.| Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. LG Energy Solution | Osang Healthcare vs. SK Hynix |
| Nable Communications vs. CU Medical Systems | Nable Communications vs. Sempio Foods Co | Nable Communications vs. NICE Information Service | Nable Communications vs. Solution Advanced Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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