Correlation Between HB Technology and Nh Investment
Can any of the company-specific risk be diversified away by investing in both HB Technology 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 HB Technology and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HB Technology TD and Nh Investment And, you can compare the effects of market volatilities on HB Technology 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 HB Technology with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Nh Investment.
Diversification Opportunities for HB Technology and Nh Investment
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 078150 and 005945 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD 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 HB Technology 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 HB Technology TD 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 HB Technology i.e., HB Technology and Nh Investment go up and down completely randomly.
Pair Corralation between HB Technology and Nh Investment
Assuming the 90 days trading horizon HB Technology TD is expected to generate 4.75 times more return on investment than Nh Investment. However, HB Technology is 4.75 times more volatile than Nh Investment And. It trades about 0.49 of its potential returns per unit of risk. Nh Investment And is currently generating about -0.1 per unit of risk. If you would invest 183,400 in HB Technology TD on October 13, 2024 and sell it today you would earn a total of 67,100 from holding HB Technology TD or generate 36.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Nh Investment And
Performance |
| Timeline |
| HB Technology TD |
| Nh Investment And |
HB Technology and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Nh Investment
The main advantage of trading using opposite HB Technology and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology 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.| HB Technology vs. Cloud Air CoLtd | HB Technology vs. Namhwa Industrial Co | HB Technology vs. PJ Metal Co | HB Technology vs. Nice Information Telecommunication |
| Nh Investment vs. CG Hi Tech | Nh Investment vs. Vina Technology Co | Nh Investment vs. Digital Imaging Technology | Nh Investment vs. HB Technology TD |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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