Correlation Between NH SPAC and Daejoo Electronic
Can any of the company-specific risk be diversified away by investing in both NH SPAC and Daejoo Electronic 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 NH SPAC and Daejoo Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH SPAC 8 and Daejoo Electronic Materials, you can compare the effects of market volatilities on NH SPAC and Daejoo Electronic 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 NH SPAC with a short position of Daejoo Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH SPAC and Daejoo Electronic.
Diversification Opportunities for NH SPAC and Daejoo Electronic
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 218410 and Daejoo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding NH SPAC 8 and Daejoo Electronic Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daejoo Electronic and NH SPAC 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 NH SPAC 8 are associated (or correlated) with Daejoo Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daejoo Electronic has no effect on the direction of NH SPAC i.e., NH SPAC and Daejoo Electronic go up and down completely randomly.
Pair Corralation between NH SPAC and Daejoo Electronic
Assuming the 90 days trading horizon NH SPAC 8 is expected to under-perform the Daejoo Electronic. But the stock apears to be less risky and, when comparing its historical volatility, NH SPAC 8 is 1.29 times less risky than Daejoo Electronic. The stock trades about -0.02 of its potential returns per unit of risk. The Daejoo Electronic Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,449,929 in Daejoo Electronic Materials on September 1, 2024 and sell it today you would lose (139,929) from holding Daejoo Electronic Materials or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH SPAC 8 vs. Daejoo Electronic Materials
Performance |
| Timeline |
| NH SPAC 8 |
| Daejoo Electronic |
NH SPAC and Daejoo Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH SPAC and Daejoo Electronic
The main advantage of trading using opposite NH SPAC and Daejoo Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH SPAC position performs unexpectedly, Daejoo Electronic 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 Daejoo Electronic will offset losses from the drop in Daejoo Electronic's long position.| NH SPAC vs. Samsung Electronics Co | NH SPAC vs. Samsung Electronics Co | NH SPAC vs. LG Energy Solution | NH SPAC vs. SK Hynix |
| Daejoo Electronic vs. Dongsin Engineering Construction | Daejoo Electronic vs. Doosan Fuel Cell | Daejoo Electronic vs. Daishin Balance 1 | Daejoo Electronic vs. Total Soft Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |