Correlation Between CU Medical and Narae Nanotech
Can any of the company-specific risk be diversified away by investing in both CU Medical and Narae Nanotech 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 CU Medical and Narae Nanotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CU Medical Systems and Narae Nanotech Corp, you can compare the effects of market volatilities on CU Medical and Narae Nanotech 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 CU Medical with a short position of Narae Nanotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CU Medical and Narae Nanotech.
Diversification Opportunities for CU Medical and Narae Nanotech
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 115480 and Narae is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CU Medical Systems and Narae Nanotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Narae Nanotech Corp and CU Medical 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 CU Medical Systems are associated (or correlated) with Narae Nanotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Narae Nanotech Corp has no effect on the direction of CU Medical i.e., CU Medical and Narae Nanotech go up and down completely randomly.
Pair Corralation between CU Medical and Narae Nanotech
Assuming the 90 days trading horizon CU Medical Systems is expected to generate 0.28 times more return on investment than Narae Nanotech. However, CU Medical Systems is 3.53 times less risky than Narae Nanotech. It trades about 0.26 of its potential returns per unit of risk. Narae Nanotech Corp is currently generating about 0.07 per unit of risk. If you would invest 65,300 in CU Medical Systems on October 14, 2024 and sell it today you would earn a total of 4,600 from holding CU Medical Systems or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CU Medical Systems vs. Narae Nanotech Corp
Performance |
| Timeline |
| CU Medical Systems |
| Narae Nanotech Corp |
CU Medical and Narae Nanotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CU Medical and Narae Nanotech
The main advantage of trading using opposite CU Medical and Narae Nanotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CU Medical position performs unexpectedly, Narae Nanotech 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 Narae Nanotech will offset losses from the drop in Narae Nanotech's long position.| CU Medical vs. TJ media Co | CU Medical vs. Korea Information Engineering | CU Medical vs. Koryo Credit Information | CU Medical vs. Daishin Information Communications |
| Narae Nanotech vs. Infinitt Healthcare Co | Narae Nanotech vs. CKH Food Health | Narae Nanotech vs. CU Medical Systems | Narae Nanotech vs. ABCO Electronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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