Correlation Between Sungchang Autotech and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Sungchang Autotech 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 Sungchang Autotech and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungchang Autotech Co and Nh Investment And, you can compare the effects of market volatilities on Sungchang Autotech 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 Sungchang Autotech with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungchang Autotech and Nh Investment.
Diversification Opportunities for Sungchang Autotech and Nh Investment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sungchang and 005945 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sungchang Autotech 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 Sungchang Autotech 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 Sungchang Autotech 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 Sungchang Autotech i.e., Sungchang Autotech and Nh Investment go up and down completely randomly.
Pair Corralation between Sungchang Autotech and Nh Investment
Assuming the 90 days trading horizon Sungchang Autotech Co is expected to under-perform the Nh Investment. In addition to that, Sungchang Autotech is 2.33 times more volatile than Nh Investment And. It trades about -0.04 of its total potential returns per unit of risk. Nh Investment And is currently generating about 0.13 per unit of volatility. If you would invest 919,604 in Nh Investment And on August 29, 2024 and sell it today you would earn a total of 283,396 from holding Nh Investment And or generate 30.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungchang Autotech Co vs. Nh Investment And
Performance |
| Timeline |
| Sungchang Autotech |
| Nh Investment And |
Sungchang Autotech and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungchang Autotech and Nh Investment
The main advantage of trading using opposite Sungchang Autotech and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungchang Autotech 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.| Sungchang Autotech vs. KMH Hitech Co | Sungchang Autotech vs. GemVaxKAEL CoLtd | Sungchang Autotech vs. Busan Industrial Co | Sungchang Autotech vs. Busan Ind |
| Nh Investment vs. Kukil Metal Co | Nh Investment vs. DataSolution | Nh Investment vs. Shinsegae Information Communication | Nh Investment vs. Formetal Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |