Correlation Between Nice Information and Samhwa Paint
Can any of the company-specific risk be diversified away by investing in both Nice Information and Samhwa Paint 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 Samhwa Paint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice Information Telecommunication and Samhwa Paint Industrial, you can compare the effects of market volatilities on Nice Information and Samhwa Paint 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 Samhwa Paint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and Samhwa Paint.
Diversification Opportunities for Nice Information and Samhwa Paint
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nice and Samhwa is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and Samhwa Paint Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhwa Paint Industrial 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 Telecommunication are associated (or correlated) with Samhwa Paint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhwa Paint Industrial has no effect on the direction of Nice Information i.e., Nice Information and Samhwa Paint go up and down completely randomly.
Pair Corralation between Nice Information and Samhwa Paint
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to generate 0.75 times more return on investment than Samhwa Paint. However, Nice Information Telecommunication is 1.33 times less risky than Samhwa Paint. It trades about 0.18 of its potential returns per unit of risk. Samhwa Paint Industrial is currently generating about -0.12 per unit of risk. If you would invest 1,700,587 in Nice Information Telecommunication on January 20, 2025 and sell it today you would earn a total of 115,413 from holding Nice Information Telecommunication or generate 6.79% 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 Telecommunica vs. Samhwa Paint Industrial
Performance |
| Timeline |
| Nice Information Tel |
| Samhwa Paint Industrial |
Nice Information and Samhwa Paint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and Samhwa Paint
The main advantage of trading using opposite Nice Information and Samhwa Paint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, Samhwa Paint 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 Samhwa Paint will offset losses from the drop in Samhwa Paint's long position.| Nice Information vs. Korean Drug Co | Nice Information vs. Cheryong Industrial CoLtd | Nice Information vs. Solution Advanced Technology | Nice Information vs. Busan Industrial Co |
| Samhwa Paint vs. AptaBio Therapeutics | Samhwa Paint vs. Daewoo SBI SPAC | Samhwa Paint vs. Dream Security co | Samhwa Paint vs. Microfriend |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |