Correlation Between Nice Information and Haesung Optics
Can any of the company-specific risk be diversified away by investing in both Nice Information and Haesung Optics 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 Haesung Optics 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 Haesung Optics Co, you can compare the effects of market volatilities on Nice Information and Haesung Optics 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 Haesung Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and Haesung Optics.
Diversification Opportunities for Nice Information and Haesung Optics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nice and Haesung is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and Haesung Optics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung Optics 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 Haesung Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung Optics has no effect on the direction of Nice Information i.e., Nice Information and Haesung Optics go up and down completely randomly.
Pair Corralation between Nice Information and Haesung Optics
Assuming the 90 days trading horizon Nice Information is expected to generate 6.02 times less return on investment than Haesung Optics. But when comparing it to its historical volatility, Nice Information Telecommunication is 1.81 times less risky than Haesung Optics. It trades about 0.01 of its potential returns per unit of risk. Haesung Optics Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 99,100 in Haesung Optics Co on November 28, 2024 and sell it today you would earn a total of 1,500 from holding Haesung Optics Co or generate 1.51% 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. Haesung Optics Co
Performance |
| Timeline |
| Nice Information Tel |
| Haesung Optics |
Nice Information and Haesung Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nice Information and Haesung Optics
The main advantage of trading using opposite Nice Information and Haesung Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, Haesung Optics 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 Haesung Optics will offset losses from the drop in Haesung Optics' 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 |
| Haesung Optics vs. Automobile Pc | Haesung Optics vs. InnoTherapy | Haesung Optics vs. Ssangyong Information Communication | Haesung Optics vs. Aprogen Healthcare Games |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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