Correlation Between NewFlex Technology and CKH Food
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology and CKH Food 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 CKH Food 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 CKH Food Health, you can compare the effects of market volatilities on NewFlex Technology and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and CKH Food.
Diversification Opportunities for NewFlex Technology and CKH Food
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between NewFlex and CKH is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of NewFlex Technology i.e., NewFlex Technology and CKH Food go up and down completely randomly.
Pair Corralation between NewFlex Technology and CKH Food
Assuming the 90 days trading horizon NewFlex Technology Co is expected to generate 1.31 times more return on investment than CKH Food. However, NewFlex Technology is 1.31 times more volatile than CKH Food Health. It trades about 0.0 of its potential returns per unit of risk. CKH Food Health is currently generating about -0.06 per unit of risk. If you would invest 752,000 in NewFlex Technology Co on November 1, 2024 and sell it today you would lose (244,000) from holding NewFlex Technology Co or give up 32.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. CKH Food Health
Performance |
| Timeline |
| NewFlex Technology |
| CKH Food Health |
NewFlex Technology and CKH Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and CKH Food
The main advantage of trading using opposite NewFlex Technology and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.| NewFlex Technology vs. CKH Food Health | NewFlex Technology vs. INFINITT Healthcare Co | NewFlex Technology vs. Korean Reinsurance Co | NewFlex Technology vs. DB Financial Investment |
| CKH Food vs. Nh Investment And | CKH Food vs. E Investment Development | CKH Food vs. Chorokbaem Healthcare Co | CKH Food vs. Cube Entertainment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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