Correlation Between Chorokbaem Healthcare and N2Tech
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare and N2Tech 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 Chorokbaem Healthcare and N2Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chorokbaem Healthcare Co and N2Tech Co, you can compare the effects of market volatilities on Chorokbaem Healthcare and N2Tech 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 Chorokbaem Healthcare with a short position of N2Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and N2Tech.
Diversification Opportunities for Chorokbaem Healthcare and N2Tech
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chorokbaem and N2Tech is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare Co and N2Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N2Tech and Chorokbaem Healthcare 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 Chorokbaem Healthcare Co are associated (or correlated) with N2Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N2Tech has no effect on the direction of Chorokbaem Healthcare i.e., Chorokbaem Healthcare and N2Tech go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and N2Tech
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to generate 3.24 times more return on investment than N2Tech. However, Chorokbaem Healthcare is 3.24 times more volatile than N2Tech Co. It trades about 0.19 of its potential returns per unit of risk. N2Tech Co is currently generating about 0.04 per unit of risk. If you would invest 29,400 in Chorokbaem Healthcare Co on October 14, 2024 and sell it today you would earn a total of 4,600 from holding Chorokbaem Healthcare Co or generate 15.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. N2Tech Co
Performance |
| Timeline |
| Chorokbaem Healthcare |
| N2Tech |
Chorokbaem Healthcare and N2Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and N2Tech
The main advantage of trading using opposite Chorokbaem Healthcare and N2Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare position performs unexpectedly, N2Tech 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 N2Tech will offset losses from the drop in N2Tech's long position.| Chorokbaem Healthcare vs. Korea Air Svc | Chorokbaem Healthcare vs. Tway Air Co | Chorokbaem Healthcare vs. iNtRON Biotechnology | Chorokbaem Healthcare vs. E Investment Development |
| N2Tech vs. Iljin Display | N2Tech vs. Chorokbaem Healthcare Co | N2Tech vs. Infinitt Healthcare Co | N2Tech vs. INFINITT Healthcare 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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