Correlation Between YeSUN Tech and Nh Investment
Can any of the company-specific risk be diversified away by investing in both YeSUN Tech and Nh Investment 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 YeSUN Tech and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YeSUN Tech CoLtd and Nh Investment And, you can compare the effects of market volatilities on YeSUN Tech and Nh Investment 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 YeSUN Tech with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of YeSUN Tech and Nh Investment.
Diversification Opportunities for YeSUN Tech and Nh Investment
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between YeSUN and 005945 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding YeSUN Tech CoLtd and Nh Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nh Investment And and YeSUN 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 YeSUN Tech CoLtd are associated (or correlated) with Nh Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nh Investment And has no effect on the direction of YeSUN Tech i.e., YeSUN Tech and Nh Investment go up and down completely randomly.
Pair Corralation between YeSUN Tech and Nh Investment
Assuming the 90 days trading horizon YeSUN Tech CoLtd is expected to under-perform the Nh Investment. In addition to that, YeSUN Tech is 7.06 times more volatile than Nh Investment And. It trades about -0.19 of its total potential returns per unit of risk. Nh Investment And is currently generating about -0.03 per unit of volatility. If you would invest 1,203,000 in Nh Investment And on August 28, 2024 and sell it today you would lose (4,000) from holding Nh Investment And or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
YeSUN Tech CoLtd vs. Nh Investment And
Performance |
| Timeline |
| YeSUN Tech CoLtd |
| Nh Investment And |
YeSUN Tech and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YeSUN Tech and Nh Investment
The main advantage of trading using opposite YeSUN Tech and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YeSUN Tech position performs unexpectedly, Nh Investment 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 Investment will offset losses from the drop in Nh Investment's long position.| YeSUN Tech vs. Korea Information Engineering | YeSUN Tech vs. Daishin Information Communications | YeSUN Tech vs. Koryo Credit Information | YeSUN Tech vs. Lotte Non Life Insurance |
| Nh Investment vs. DB Financial Investment | Nh Investment vs. BNK Financial Group | Nh Investment vs. DB Insurance Co | Nh Investment vs. E Investment Development |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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