Correlation Between Fine Besteel and NAU IB
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and NAU IB 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 Fine Besteel and NAU IB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and NAU IB Capital, you can compare the effects of market volatilities on Fine Besteel and NAU IB 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 Fine Besteel with a short position of NAU IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and NAU IB.
Diversification Opportunities for Fine Besteel and NAU IB
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fine and NAU is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and NAU IB Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAU IB Capital and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with NAU IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAU IB Capital has no effect on the direction of Fine Besteel i.e., Fine Besteel and NAU IB go up and down completely randomly.
Pair Corralation between Fine Besteel and NAU IB
Assuming the 90 days trading horizon Fine Besteel Co is expected to under-perform the NAU IB. But the stock apears to be less risky and, when comparing its historical volatility, Fine Besteel Co is 2.44 times less risky than NAU IB. The stock trades about -0.02 of its potential returns per unit of risk. The NAU IB Capital is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 92,900 in NAU IB Capital on September 13, 2024 and sell it today you would earn a total of 36,300 from holding NAU IB Capital or generate 39.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. NAU IB Capital
Performance |
| Timeline |
| Fine Besteel |
| NAU IB Capital |
Fine Besteel and NAU IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and NAU IB
The main advantage of trading using opposite Fine Besteel and NAU IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, NAU IB 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 NAU IB will offset losses from the drop in NAU IB's long position.| Fine Besteel vs. Samsung Electronics Co | Fine Besteel vs. Samsung Electronics Co | Fine Besteel vs. SK Hynix | Fine Besteel vs. POSCO Holdings |
| NAU IB vs. Hanjin Transportation Co | NAU IB vs. Husteel | NAU IB vs. BooKook Steel Co | NAU IB vs. Fine Besteel 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| 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 | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets |