Correlation Between Nice Information and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both Nice Information and Shinsegae Food 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 Shinsegae Food 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 Shinsegae Food, you can compare the effects of market volatilities on Nice Information and Shinsegae Food 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 Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and Shinsegae Food.
Diversification Opportunities for Nice Information and Shinsegae Food
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nice and Shinsegae is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food 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 Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of Nice Information i.e., Nice Information and Shinsegae Food go up and down completely randomly.
Pair Corralation between Nice Information and Shinsegae Food
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to generate 0.29 times more return on investment than Shinsegae Food. However, Nice Information Telecommunication is 3.45 times less risky than Shinsegae Food. It trades about -0.36 of its potential returns per unit of risk. Shinsegae Food is currently generating about -0.1 per unit of risk. If you would invest 1,816,000 in Nice Information Telecommunication on November 4, 2024 and sell it today you would lose (87,000) from holding Nice Information Telecommunication or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice Information Telecommunica vs. Shinsegae Food
Performance |
| Timeline |
| Nice Information Tel |
| Shinsegae Food |
Nice Information and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and Shinsegae Food
The main advantage of trading using opposite Nice Information and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food'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 |
| Shinsegae Food vs. Korea Industrial Co | Shinsegae Food vs. Seoul Food Industrial | Shinsegae Food vs. Dong A Steel Technology | Shinsegae Food vs. KG Eco 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| 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 |