Correlation Between Nasmedia and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both Nasmedia and Shinsegae Information 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 Nasmedia and Shinsegae Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasmedia Co and Shinsegae Information Communication, you can compare the effects of market volatilities on Nasmedia and Shinsegae Information 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 Nasmedia with a short position of Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasmedia and Shinsegae Information.
Diversification Opportunities for Nasmedia and Shinsegae Information
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nasmedia and Shinsegae is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Nasmedia Co and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information and Nasmedia 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 Nasmedia Co are associated (or correlated) with Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of Nasmedia i.e., Nasmedia and Shinsegae Information go up and down completely randomly.
Pair Corralation between Nasmedia and Shinsegae Information
Assuming the 90 days trading horizon Nasmedia Co is expected to generate 1.39 times more return on investment than Shinsegae Information. However, Nasmedia is 1.39 times more volatile than Shinsegae Information Communication. It trades about -0.03 of its potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.07 per unit of risk. If you would invest 2,048,967 in Nasmedia Co on August 29, 2024 and sell it today you would lose (592,967) from holding Nasmedia Co or give up 28.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasmedia Co vs. Shinsegae Information Communic
Performance |
| Timeline |
| Nasmedia |
| Shinsegae Information |
Nasmedia and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasmedia and Shinsegae Information
The main advantage of trading using opposite Nasmedia and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasmedia position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.The idea behind Nasmedia Co and Shinsegae Information Communication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Shinsegae Information vs. AptaBio Therapeutics | Shinsegae Information vs. Daewoo SBI SPAC | Shinsegae Information vs. Dream Security co | Shinsegae Information vs. Microfriend |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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