Correlation Between Global Standard and Namhwa Industrial
Can any of the company-specific risk be diversified away by investing in both Global Standard and Namhwa Industrial 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 Global Standard and Namhwa Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Standard Technology and Namhwa Industrial Co, you can compare the effects of market volatilities on Global Standard and Namhwa Industrial 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 Global Standard with a short position of Namhwa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Standard and Namhwa Industrial.
Diversification Opportunities for Global Standard and Namhwa Industrial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Global and Namhwa is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Global Standard Technology and Namhwa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namhwa Industrial and Global Standard 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 Global Standard Technology are associated (or correlated) with Namhwa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namhwa Industrial has no effect on the direction of Global Standard i.e., Global Standard and Namhwa Industrial go up and down completely randomly.
Pair Corralation between Global Standard and Namhwa Industrial
Assuming the 90 days trading horizon Global Standard is expected to generate 1.69 times less return on investment than Namhwa Industrial. In addition to that, Global Standard is 1.63 times more volatile than Namhwa Industrial Co. It trades about 0.03 of its total potential returns per unit of risk. Namhwa Industrial Co is currently generating about 0.09 per unit of volatility. If you would invest 511,000 in Namhwa Industrial Co on November 6, 2024 and sell it today you would earn a total of 12,000 from holding Namhwa Industrial Co or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Global Standard Technology vs. Namhwa Industrial Co
Performance |
| Timeline |
| Global Standard Tech |
| Namhwa Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Global Standard and Namhwa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Standard and Namhwa Industrial
The main advantage of trading using opposite Global Standard and Namhwa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Standard position performs unexpectedly, Namhwa Industrial 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 Namhwa Industrial will offset losses from the drop in Namhwa Industrial's long position.| Global Standard vs. Iljin Display | Global Standard vs. Bookook Steel | Global Standard vs. Finebesteel | Global Standard vs. BooKook Steel Co |
| Namhwa Industrial vs. Pan Entertainment Co | Namhwa Industrial vs. JYP Entertainment | Namhwa Industrial vs. AeroSpace Technology of | Namhwa Industrial vs. NH SPAC 8 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |