Correlation Between Namu Tech and PH Tech
Can any of the company-specific risk be diversified away by investing in both Namu Tech and PH Tech 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 Namu Tech and PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namu Tech CoLtd and PH Tech Co, you can compare the effects of market volatilities on Namu Tech and PH Tech 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 Namu Tech with a short position of PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namu Tech and PH Tech.
Diversification Opportunities for Namu Tech and PH Tech
Poor diversification
The 3 months correlation between Namu and 239890 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Namu Tech CoLtd and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech and Namu Tech 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 Namu Tech CoLtd are associated (or correlated) with PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Namu Tech i.e., Namu Tech and PH Tech go up and down completely randomly.
Pair Corralation between Namu Tech and PH Tech
Assuming the 90 days trading horizon Namu Tech CoLtd is expected to generate 0.35 times more return on investment than PH Tech. However, Namu Tech CoLtd is 2.84 times less risky than PH Tech. It trades about -0.51 of its potential returns per unit of risk. PH Tech Co is currently generating about -0.26 per unit of risk. If you would invest 146,600 in Namu Tech CoLtd on December 9, 2024 and sell it today you would lose (13,400) from holding Namu Tech CoLtd or give up 9.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namu Tech CoLtd vs. PH Tech Co
Performance |
| Timeline |
| Namu Tech CoLtd |
| PH Tech |
Namu Tech and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namu Tech and PH Tech
The main advantage of trading using opposite Namu Tech and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namu Tech position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| Namu Tech vs. CU Tech Corp | Namu Tech vs. Woori Technology | Namu Tech vs. Intellian Technologies | Namu Tech vs. Ewon Comfortech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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