Correlation Between ENERGYMACHINERY KOREA and NexturnBioscience
Can any of the company-specific risk be diversified away by investing in both ENERGYMACHINERY KOREA and NexturnBioscience 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 ENERGYMACHINERY KOREA and NexturnBioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENERGYMACHINERY KOREA CoLtd and NexturnBioscience Co, you can compare the effects of market volatilities on ENERGYMACHINERY KOREA and NexturnBioscience 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 ENERGYMACHINERY KOREA with a short position of NexturnBioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENERGYMACHINERY KOREA and NexturnBioscience.
Diversification Opportunities for ENERGYMACHINERY KOREA and NexturnBioscience
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ENERGYMACHINERY and NexturnBioscience is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding ENERGYMACHINERY KOREA CoLtd and NexturnBioscience Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexturnBioscience and ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA CoLtd are associated (or correlated) with NexturnBioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexturnBioscience has no effect on the direction of ENERGYMACHINERY KOREA i.e., ENERGYMACHINERY KOREA and NexturnBioscience go up and down completely randomly.
Pair Corralation between ENERGYMACHINERY KOREA and NexturnBioscience
Assuming the 90 days trading horizon ENERGYMACHINERY KOREA CoLtd is expected to generate 0.64 times more return on investment than NexturnBioscience. However, ENERGYMACHINERY KOREA CoLtd is 1.56 times less risky than NexturnBioscience. It trades about -0.03 of its potential returns per unit of risk. NexturnBioscience Co is currently generating about -0.04 per unit of risk. If you would invest 283,500 in ENERGYMACHINERY KOREA CoLtd on September 2, 2024 and sell it today you would lose (101,800) from holding ENERGYMACHINERY KOREA CoLtd or give up 35.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENERGYMACHINERY KOREA CoLtd vs. NexturnBioscience Co
Performance |
| Timeline |
| ENERGYMACHINERY KOREA |
| NexturnBioscience |
ENERGYMACHINERY KOREA and NexturnBioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENERGYMACHINERY KOREA and NexturnBioscience
The main advantage of trading using opposite ENERGYMACHINERY KOREA and NexturnBioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENERGYMACHINERY KOREA position performs unexpectedly, NexturnBioscience 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 NexturnBioscience will offset losses from the drop in NexturnBioscience's long position.| ENERGYMACHINERY KOREA vs. Korea New Network | ENERGYMACHINERY KOREA vs. ICD Co | ENERGYMACHINERY KOREA vs. DYPNF CoLtd | ENERGYMACHINERY KOREA vs. Busan Industrial Co |
| NexturnBioscience vs. Cloud Air CoLtd | NexturnBioscience vs. Korea Air Svc | NexturnBioscience vs. Nable Communications | NexturnBioscience vs. Jin Air 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |