Correlation Between Hugel and NH Investment
Can any of the company-specific risk be diversified away by investing in both Hugel and NH Investment 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 Hugel and NH Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugel Inc and NH Investment Securities, you can compare the effects of market volatilities on Hugel and NH Investment 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 Hugel with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugel and NH Investment.
Diversification Opportunities for Hugel and NH Investment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hugel and 005940 is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hugel Inc and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities and Hugel 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 Hugel Inc are associated (or correlated) with NH Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Investment Securities has no effect on the direction of Hugel i.e., Hugel and NH Investment go up and down completely randomly.
Pair Corralation between Hugel and NH Investment
Assuming the 90 days trading horizon Hugel Inc is expected to generate 2.29 times more return on investment than NH Investment. However, Hugel is 2.29 times more volatile than NH Investment Securities. It trades about 0.01 of its potential returns per unit of risk. NH Investment Securities is currently generating about -0.01 per unit of risk. If you would invest 26,600,000 in Hugel Inc on August 29, 2024 and sell it today you would lose (700,000) from holding Hugel Inc or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hugel Inc vs. NH Investment Securities
Performance |
| Timeline |
| Hugel Inc |
| NH Investment Securities |
Hugel and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hugel and NH Investment
The main advantage of trading using opposite Hugel and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugel position performs unexpectedly, NH Investment 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 NH Investment will offset losses from the drop in NH Investment's long position.| Hugel vs. UJU Electronics Co | Hugel vs. Shinil Electronics Co | Hugel vs. Asiana Airlines | Hugel vs. Settlebank |
| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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