Correlation Between Shin Steel and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Shin Steel 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 Shin Steel and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shin Steel Co and Nh Investment And, you can compare the effects of market volatilities on Shin Steel 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 Shin Steel with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shin Steel and Nh Investment.
Diversification Opportunities for Shin Steel and Nh Investment
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shin and 005945 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shin Steel Co and Nh Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nh Investment And and Shin Steel 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 Shin Steel Co 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 And has no effect on the direction of Shin Steel i.e., Shin Steel and Nh Investment go up and down completely randomly.
Pair Corralation between Shin Steel and Nh Investment
Assuming the 90 days trading horizon Shin Steel Co is expected to under-perform the Nh Investment. In addition to that, Shin Steel is 3.75 times more volatile than Nh Investment And. It trades about -0.03 of its total potential returns per unit of risk. Nh Investment And is currently generating about 0.11 per unit of volatility. If you would invest 1,040,000 in Nh Investment And on October 12, 2024 and sell it today you would earn a total of 177,000 from holding Nh Investment And or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shin Steel Co vs. Nh Investment And
Performance |
| Timeline |
| Shin Steel |
| Nh Investment And |
Shin Steel and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shin Steel and Nh Investment
The main advantage of trading using opposite Shin Steel and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shin Steel 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.| Shin Steel vs. HB Technology TD | Shin Steel vs. Ilji Technology Co | Shin Steel vs. NewFlex Technology Co | Shin Steel vs. Aprogen Healthcare Games |
| Nh Investment vs. Finebesteel | Nh Investment vs. Shin Steel Co | Nh Investment vs. T3 Entertainment Co | Nh Investment vs. Pan Entertainment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| 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 | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |