Correlation Between Nice Information and Samjin LND
Can any of the company-specific risk be diversified away by investing in both Nice Information and Samjin LND 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 Samjin LND 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 Samjin LND Co, you can compare the effects of market volatilities on Nice Information and Samjin LND 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 Samjin LND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and Samjin LND.
Diversification Opportunities for Nice Information and Samjin LND
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nice and Samjin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and Samjin LND Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samjin LND 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 Samjin LND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samjin LND has no effect on the direction of Nice Information i.e., Nice Information and Samjin LND go up and down completely randomly.
Pair Corralation between Nice Information and Samjin LND
Assuming the 90 days trading horizon Nice Information Telecommunication is expected to generate 0.34 times more return on investment than Samjin LND. However, Nice Information Telecommunication is 2.9 times less risky than Samjin LND. It trades about -0.01 of its potential returns per unit of risk. Samjin LND Co is currently generating about -0.25 per unit of risk. If you would invest 1,888,000 in Nice Information Telecommunication on September 13, 2024 and sell it today you would lose (13,000) from holding Nice Information Telecommunication or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nice Information Telecommunica vs. Samjin LND Co
Performance |
| Timeline |
| Nice Information Tel |
| Samjin LND |
Nice Information and Samjin LND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and Samjin LND
The main advantage of trading using opposite Nice Information and Samjin LND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, Samjin LND 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 Samjin LND will offset losses from the drop in Samjin LND's long position.| Nice Information vs. Cube Entertainment | Nice Information vs. Dreamus Company | Nice Information vs. LG Energy Solution | Nice Information vs. Dongwon System |
| Samjin LND vs. Korean Air Lines | Samjin LND vs. Dongbu Insurance Co | Samjin LND vs. Incar Financial Service | Samjin LND vs. Lotte Non Life Insurance |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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