Correlation Between Namhwa Industrial and Maniker F
Can any of the company-specific risk be diversified away by investing in both Namhwa Industrial and Maniker F 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 Maniker F 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 Maniker F G, you can compare the effects of market volatilities on Namhwa Industrial and Maniker F 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 Maniker F. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namhwa Industrial and Maniker F.
Diversification Opportunities for Namhwa Industrial and Maniker F
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Namhwa and Maniker is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Namhwa Industrial Co and Maniker F G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maniker F G 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 Maniker F. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maniker F G has no effect on the direction of Namhwa Industrial i.e., Namhwa Industrial and Maniker F go up and down completely randomly.
Pair Corralation between Namhwa Industrial and Maniker F
Assuming the 90 days trading horizon Namhwa Industrial is expected to generate 2.47 times less return on investment than Maniker F. In addition to that, Namhwa Industrial is 1.65 times more volatile than Maniker F G. It trades about 0.08 of its total potential returns per unit of risk. Maniker F G is currently generating about 0.31 per unit of volatility. If you would invest 278,000 in Maniker F G on October 25, 2024 and sell it today you would earn a total of 19,000 from holding Maniker F G or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Namhwa Industrial Co vs. Maniker F G
Performance |
| Timeline |
| Namhwa Industrial |
| Maniker F G |
Namhwa Industrial and Maniker F Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namhwa Industrial and Maniker F
The main advantage of trading using opposite Namhwa Industrial and Maniker F positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namhwa Industrial position performs unexpectedly, Maniker F 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 Maniker F will offset losses from the drop in Maniker F's long position.| Namhwa Industrial vs. LG Chemicals | Namhwa Industrial vs. Iljin Display | Namhwa Industrial vs. LG Display Co | Namhwa Industrial vs. Taegu Broadcasting |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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