Correlation Between NH SPAC and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both NH SPAC and Shinsegae Information 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 Shinsegae Information 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 Shinsegae Information Communication, you can compare the effects of market volatilities on NH SPAC and Shinsegae Information 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH SPAC and Shinsegae Information.
Diversification Opportunities for NH SPAC and Shinsegae Information
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between 225570 and Shinsegae is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding NH SPAC 8 and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of NH SPAC i.e., NH SPAC and Shinsegae Information go up and down completely randomly.
Pair Corralation between NH SPAC and Shinsegae Information
Assuming the 90 days trading horizon NH SPAC 8 is expected to under-perform the Shinsegae Information. But the stock apears to be less risky and, when comparing its historical volatility, NH SPAC 8 is 2.06 times less risky than Shinsegae Information. The stock trades about -0.06 of its potential returns per unit of risk. The Shinsegae Information Communication is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 898,589 in Shinsegae Information Communication on December 4, 2024 and sell it today you would earn a total of 340,411 from holding Shinsegae Information Communication or generate 37.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH SPAC 8 vs. Shinsegae Information Communic
Performance |
| Timeline |
| NH SPAC 8 |
| Shinsegae Information |
NH SPAC and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH SPAC and Shinsegae Information
The main advantage of trading using opposite NH SPAC and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH SPAC position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information's long position.| NH SPAC vs. Hanjin Transportation Co | NH SPAC vs. LS Materials | NH SPAC vs. YeaRimDang Publishing Co | NH SPAC vs. Busan Industrial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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