Correlation Between Namhwa Industrial and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Namhwa Industrial and Pureun Mutual 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 Namhwa Industrial and Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namhwa Industrial Co and Pureun Mutual Savings, you can compare the effects of market volatilities on Namhwa Industrial and Pureun Mutual 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 Namhwa Industrial with a short position of Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namhwa Industrial and Pureun Mutual.
Diversification Opportunities for Namhwa Industrial and Pureun Mutual
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Namhwa and Pureun is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Namhwa Industrial Co and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings and Namhwa Industrial 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 Namhwa Industrial Co are associated (or correlated) with Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Namhwa Industrial i.e., Namhwa Industrial and Pureun Mutual go up and down completely randomly.
Pair Corralation between Namhwa Industrial and Pureun Mutual
Assuming the 90 days trading horizon Namhwa Industrial Co is expected to generate 0.63 times more return on investment than Pureun Mutual. However, Namhwa Industrial Co is 1.59 times less risky than Pureun Mutual. It trades about 0.09 of its potential returns per unit of risk. Pureun Mutual Savings is currently generating about 0.04 per unit of risk. If you would invest 511,223 in Namhwa Industrial Co on October 23, 2024 and sell it today you would earn a total of 28,777 from holding Namhwa Industrial Co or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namhwa Industrial Co vs. Pureun Mutual Savings
Performance |
| Timeline |
| Namhwa Industrial |
| Pureun Mutual Savings |
Namhwa Industrial and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namhwa Industrial and Pureun Mutual
The main advantage of trading using opposite Namhwa Industrial and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namhwa Industrial position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| Namhwa Industrial vs. Shinhan Inverse Silver | Namhwa Industrial vs. Total Soft Bank | Namhwa Industrial vs. JYP Entertainment |
| Pureun Mutual vs. PJ Metal Co | Pureun Mutual vs. Aprogen Healthcare Games | Pureun Mutual vs. Dongil Metal Co | Pureun Mutual vs. Namhwa Industrial 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |