Correlation Between Daewon Media and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Daewon Media and Nh Investment 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 Daewon Media and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daewon Media Co and Nh Investment And, you can compare the effects of market volatilities on Daewon Media and Nh Investment 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 Daewon Media with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daewon Media and Nh Investment.
Diversification Opportunities for Daewon Media and Nh Investment
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daewon and 005945 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Daewon Media Co and Nh Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nh Investment And and Daewon Media 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 Daewon Media Co are associated (or correlated) with Nh Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nh Investment And has no effect on the direction of Daewon Media i.e., Daewon Media and Nh Investment go up and down completely randomly.
Pair Corralation between Daewon Media and Nh Investment
Assuming the 90 days trading horizon Daewon Media Co is expected to under-perform the Nh Investment. In addition to that, Daewon Media is 2.75 times more volatile than Nh Investment And. It trades about -0.05 of its total potential returns per unit of risk. Nh Investment And is currently generating about 0.11 per unit of volatility. If you would invest 833,478 in Nh Investment And on October 23, 2024 and sell it today you would earn a total of 412,522 from holding Nh Investment And or generate 49.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daewon Media Co vs. Nh Investment And
Performance |
| Timeline |
| Daewon Media |
| Nh Investment And |
Daewon Media and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daewon Media and Nh Investment
The main advantage of trading using opposite Daewon Media and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daewon Media position performs unexpectedly, Nh Investment 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 Nh Investment will offset losses from the drop in Nh Investment's long position.| Daewon Media vs. LEENO Industrial | Daewon Media vs. PJ Metal Co | Daewon Media vs. Hyunwoo Industrial Co | Daewon Media vs. Hyundai Industrial Co |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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