Correlation Between Nasmedia and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Nasmedia and Inzi Display 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 Inzi Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasmedia Co and Inzi Display CoLtd, you can compare the effects of market volatilities on Nasmedia and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasmedia and Inzi Display.
Diversification Opportunities for Nasmedia and Inzi Display
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasmedia and Inzi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nasmedia Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Nasmedia i.e., Nasmedia and Inzi Display go up and down completely randomly.
Pair Corralation between Nasmedia and Inzi Display
Assuming the 90 days trading horizon Nasmedia Co is expected to under-perform the Inzi Display. But the stock apears to be less risky and, when comparing its historical volatility, Nasmedia Co is 1.56 times less risky than Inzi Display. The stock trades about -0.04 of its potential returns per unit of risk. The Inzi Display CoLtd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 166,474 in Inzi Display CoLtd on September 12, 2024 and sell it today you would lose (30,274) from holding Inzi Display CoLtd or give up 18.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasmedia Co vs. Inzi Display CoLtd
Performance |
| Timeline |
| Nasmedia |
| Inzi Display CoLtd |
Nasmedia and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasmedia and Inzi Display
The main advantage of trading using opposite Nasmedia and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasmedia position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Nasmedia vs. YG Entertainment | Nasmedia vs. JYP Entertainment | Nasmedia vs. Cube Entertainment | Nasmedia vs. FNC Entertainment Co |
| Inzi Display vs. Cube Entertainment | Inzi Display vs. Dreamus Company | Inzi Display vs. LG Energy Solution | Inzi Display vs. Dongwon System |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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