Correlation Between NewFlex Technology and Namyang Dairy
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology and Namyang Dairy 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 NewFlex Technology and Namyang Dairy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and Namyang Dairy, you can compare the effects of market volatilities on NewFlex Technology and Namyang Dairy 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 NewFlex Technology with a short position of Namyang Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and Namyang Dairy.
Diversification Opportunities for NewFlex Technology and Namyang Dairy
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NewFlex and Namyang is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co and Namyang Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namyang Dairy and NewFlex 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 NewFlex Technology Co are associated (or correlated) with Namyang Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namyang Dairy has no effect on the direction of NewFlex Technology i.e., NewFlex Technology and Namyang Dairy go up and down completely randomly.
Pair Corralation between NewFlex Technology and Namyang Dairy
Assuming the 90 days trading horizon NewFlex Technology Co is expected to generate 2.54 times more return on investment than Namyang Dairy. However, NewFlex Technology is 2.54 times more volatile than Namyang Dairy. It trades about 0.19 of its potential returns per unit of risk. Namyang Dairy is currently generating about 0.0 per unit of risk. If you would invest 487,000 in NewFlex Technology Co on October 14, 2024 and sell it today you would earn a total of 70,000 from holding NewFlex Technology Co or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. Namyang Dairy
Performance |
| Timeline |
| NewFlex Technology |
| Namyang Dairy |
NewFlex Technology and Namyang Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and Namyang Dairy
The main advantage of trading using opposite NewFlex Technology and Namyang Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology position performs unexpectedly, Namyang Dairy 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 Namyang Dairy will offset losses from the drop in Namyang Dairy's long position.| NewFlex Technology vs. Dongkuk Structures Construction | NewFlex Technology vs. Keyang Electric Machinery | NewFlex Technology vs. Hanshin Construction Co | NewFlex Technology vs. InfoBank |
| Namyang Dairy vs. Guyoung Technology Co | Namyang Dairy vs. Seers Technology | Namyang Dairy vs. NewFlex Technology Co | Namyang Dairy vs. ENF Technology 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |