Correlation Between Nable Communications and Settlebank
Can any of the company-specific risk be diversified away by investing in both Nable Communications and Settlebank 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 Settlebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nable Communications and Settlebank, you can compare the effects of market volatilities on Nable Communications and Settlebank 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 Settlebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nable Communications and Settlebank.
Diversification Opportunities for Nable Communications and Settlebank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nable and Settlebank is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nable Communications and Settlebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Settlebank 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 Settlebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Settlebank has no effect on the direction of Nable Communications i.e., Nable Communications and Settlebank go up and down completely randomly.
Pair Corralation between Nable Communications and Settlebank
Assuming the 90 days trading horizon Nable Communications is expected to generate 0.67 times more return on investment than Settlebank. However, Nable Communications is 1.5 times less risky than Settlebank. It trades about -0.12 of its potential returns per unit of risk. Settlebank is currently generating about -0.1 per unit of risk. If you would invest 664,000 in Nable Communications on November 7, 2024 and sell it today you would lose (23,000) from holding Nable Communications or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
Nable Communications vs. Settlebank
Performance |
| Timeline |
| Nable Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Settlebank |
Nable Communications and Settlebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nable Communications and Settlebank
The main advantage of trading using opposite Nable Communications and Settlebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nable Communications position performs unexpectedly, Settlebank 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 Settlebank will offset losses from the drop in Settlebank's long position.| Nable Communications vs. Heungkuk Metaltech CoLtd | Nable Communications vs. Ilji Technology Co | Nable Communications vs. AeroSpace Technology of | Nable Communications vs. Puloon Technology |
| Settlebank vs. Dongbang Transport Logistics | Settlebank vs. SKONEC Entertainment Co | Settlebank vs. Korea Petro Chemical | Settlebank vs. SH Energy Chemical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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