Correlation Between NH SPAC and Daehan Steel
Can any of the company-specific risk be diversified away by investing in both NH SPAC and Daehan Steel 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 Daehan Steel 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 Daehan Steel, you can compare the effects of market volatilities on NH SPAC and Daehan Steel 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 Daehan Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH SPAC and Daehan Steel.
Diversification Opportunities for NH SPAC and Daehan Steel
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 225570 and Daehan is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding NH SPAC 8 and Daehan Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Steel 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 Daehan Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Steel has no effect on the direction of NH SPAC i.e., NH SPAC and Daehan Steel go up and down completely randomly.
Pair Corralation between NH SPAC and Daehan Steel
Assuming the 90 days trading horizon NH SPAC 8 is expected to generate 1.79 times more return on investment than Daehan Steel. However, NH SPAC is 1.79 times more volatile than Daehan Steel. It trades about 0.25 of its potential returns per unit of risk. Daehan Steel is currently generating about 0.24 per unit of risk. If you would invest 1,256,000 in NH SPAC 8 on October 9, 2024 and sell it today you would earn a total of 135,000 from holding NH SPAC 8 or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH SPAC 8 vs. Daehan Steel
Performance |
| Timeline |
| NH SPAC 8 |
| Daehan Steel |
NH SPAC and Daehan Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH SPAC and Daehan Steel
The main advantage of trading using opposite NH SPAC and Daehan Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH SPAC position performs unexpectedly, Daehan Steel 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 Daehan Steel will offset losses from the drop in Daehan Steel's long position.| NH SPAC vs. Dongil Metal Co | NH SPAC vs. GS Retail Co | NH SPAC vs. iNtRON Biotechnology | NH SPAC vs. Namhwa Industrial Co |
| Daehan Steel vs. Hankukpackage Co | Daehan Steel vs. RFTech Co | Daehan Steel vs. Cots Technology Co | Daehan Steel vs. Sam Yang Foods |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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