Correlation Between Nice Information and Playgram
Can any of the company-specific risk be diversified away by investing in both Nice Information and Playgram 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 Playgram 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 Playgram Co, you can compare the effects of market volatilities on Nice Information and Playgram 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 Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and Playgram.
Diversification Opportunities for Nice Information and Playgram
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nice and Playgram is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram 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 Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Nice Information i.e., Nice Information and Playgram go up and down completely randomly.
Pair Corralation between Nice Information and Playgram
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to under-perform the Playgram. But the stock apears to be less risky and, when comparing its historical volatility, Nice Information Telecommunication is 4.42 times less risky than Playgram. The stock trades about -0.09 of its potential returns per unit of risk. The Playgram Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 61,100 in Playgram Co on November 4, 2024 and sell it today you would lose (23,000) from holding Playgram Co or give up 37.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice Information Telecommunica vs. Playgram Co
Performance |
| Timeline |
| Nice Information Tel |
| Playgram |
Nice Information and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and Playgram
The main advantage of trading using opposite Nice Information and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Nice Information vs. Soulbrain Holdings Co | Nice Information vs. NICE Total Cash | Nice Information vs. Geumhwa Plant Service | Nice Information vs. AfreecaTV Co |
| Playgram vs. SBI Investment KOREA | Playgram vs. Leaders Technology Investment | Playgram vs. DSC Investment | Playgram vs. Korea Information Engineering |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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