Correlation Between Nable Communications and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Nable Communications and Duksan Hi 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 Nable Communications and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nable Communications and Duksan Hi Metal, you can compare the effects of market volatilities on Nable Communications and Duksan Hi 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 Nable Communications with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nable Communications and Duksan Hi.
Diversification Opportunities for Nable Communications and Duksan Hi
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nable and Duksan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nable Communications and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Nable Communications 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 Nable Communications are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Nable Communications i.e., Nable Communications and Duksan Hi go up and down completely randomly.
Pair Corralation between Nable Communications and Duksan Hi
Assuming the 90 days trading horizon Nable Communications is expected to under-perform the Duksan Hi. But the stock apears to be less risky and, when comparing its historical volatility, Nable Communications is 1.09 times less risky than Duksan Hi. The stock trades about -0.15 of its potential returns per unit of risk. The Duksan Hi Metal is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 385,000 in Duksan Hi Metal on October 30, 2024 and sell it today you would earn a total of 18,500 from holding Duksan Hi Metal or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nable Communications vs. Duksan Hi Metal
Performance |
| Timeline |
| Nable Communications |
| Duksan Hi Metal |
Nable Communications and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nable Communications and Duksan Hi
The main advantage of trading using opposite Nable Communications and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nable Communications position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Nable Communications vs. CU Medical Systems | Nable Communications vs. Sempio Foods Co | Nable Communications vs. NICE Information Service | Nable Communications vs. Solution Advanced Technology |
| Duksan Hi vs. Shinhan Inverse Silver | Duksan Hi vs. JYP Entertainment Corp | Duksan Hi vs. YG Entertainment | Duksan Hi vs. Barunson Entertainment Arts |
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.
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