Correlation Between NHN KCP and Com2uS
Can any of the company-specific risk be diversified away by investing in both NHN KCP and Com2uS 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 NHN KCP and Com2uS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NHN KCP Corp and Com2uS, you can compare the effects of market volatilities on NHN KCP and Com2uS 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 NHN KCP with a short position of Com2uS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NHN KCP and Com2uS.
Diversification Opportunities for NHN KCP and Com2uS
Average diversification
The 3 months correlation between NHN and Com2uS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding NHN KCP Corp and Com2uS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Com2uS and NHN KCP 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 NHN KCP Corp are associated (or correlated) with Com2uS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Com2uS has no effect on the direction of NHN KCP i.e., NHN KCP and Com2uS go up and down completely randomly.
Pair Corralation between NHN KCP and Com2uS
Assuming the 90 days trading horizon NHN KCP Corp is expected to under-perform the Com2uS. In addition to that, NHN KCP is 1.14 times more volatile than Com2uS. It trades about -0.03 of its total potential returns per unit of risk. Com2uS is currently generating about 0.0 per unit of volatility. If you would invest 5,753,849 in Com2uS on September 2, 2024 and sell it today you would lose (863,849) from holding Com2uS or give up 15.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NHN KCP Corp vs. Com2uS
Performance |
| Timeline |
| NHN KCP Corp |
| Com2uS |
NHN KCP and Com2uS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NHN KCP and Com2uS
The main advantage of trading using opposite NHN KCP and Com2uS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NHN KCP position performs unexpectedly, Com2uS 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 Com2uS will offset losses from the drop in Com2uS's long position.| NHN KCP vs. Dongsin Engineering Construction | NHN KCP vs. Doosan Fuel Cell | NHN KCP vs. Daishin Balance 1 | NHN KCP vs. Total Soft Bank |
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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |