Correlation Between SillaJen and NH SPAC
Can any of the company-specific risk be diversified away by investing in both SillaJen and NH SPAC 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 SillaJen and NH SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SillaJen and NH SPAC 2, you can compare the effects of market volatilities on SillaJen and NH SPAC 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 SillaJen with a short position of NH SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SillaJen and NH SPAC.
Diversification Opportunities for SillaJen and NH SPAC
Poor diversification
The 3 months correlation between SillaJen and 206640 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SillaJen and NH SPAC 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH SPAC 2 and SillaJen 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 SillaJen are associated (or correlated) with NH SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH SPAC 2 has no effect on the direction of SillaJen i.e., SillaJen and NH SPAC go up and down completely randomly.
Pair Corralation between SillaJen and NH SPAC
Assuming the 90 days trading horizon SillaJen is expected to under-perform the NH SPAC. In addition to that, SillaJen is 1.08 times more volatile than NH SPAC 2. It trades about -0.04 of its total potential returns per unit of risk. NH SPAC 2 is currently generating about 0.05 per unit of volatility. If you would invest 1,000,623 in NH SPAC 2 on September 3, 2024 and sell it today you would earn a total of 743,377 from holding NH SPAC 2 or generate 74.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SillaJen vs. NH SPAC 2
Performance |
| Timeline |
| SillaJen |
| NH SPAC 2 |
SillaJen and NH SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SillaJen and NH SPAC
The main advantage of trading using opposite SillaJen and NH SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SillaJen position performs unexpectedly, NH SPAC 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 SPAC will offset losses from the drop in NH SPAC's long position.| SillaJen vs. Kyung In Synthetic Corp | SillaJen vs. Kukdong Oil Chemicals | SillaJen vs. KyungIn Electronics Co | SillaJen vs. Korea Petro 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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