Correlation Between Handok Clean and NH Investment
Can any of the company-specific risk be diversified away by investing in both Handok Clean 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 Handok Clean and NH Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Handok Clean Tech and NH Investment Securities, you can compare the effects of market volatilities on Handok Clean 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 Handok Clean with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handok Clean and NH Investment.
Diversification Opportunities for Handok Clean and NH Investment
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Handok and 005940 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Handok Clean Tech and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities and Handok Clean 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 Handok Clean Tech 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 Securities has no effect on the direction of Handok Clean i.e., Handok Clean and NH Investment go up and down completely randomly.
Pair Corralation between Handok Clean and NH Investment
Assuming the 90 days trading horizon Handok Clean Tech is expected to under-perform the NH Investment. But the stock apears to be less risky and, when comparing its historical volatility, Handok Clean Tech is 1.5 times less risky than NH Investment. The stock trades about -0.06 of its potential returns per unit of risk. The NH Investment Securities is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 938,028 in NH Investment Securities on September 3, 2024 and sell it today you would earn a total of 393,972 from holding NH Investment Securities or generate 42.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Handok Clean Tech vs. NH Investment Securities
Performance |
| Timeline |
| Handok Clean Tech |
| NH Investment Securities |
Handok Clean and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handok Clean and NH Investment
The main advantage of trading using opposite Handok Clean and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handok Clean 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.| Handok Clean vs. Busan Industrial Co | Handok Clean vs. UNISEM Co | Handok Clean vs. RPBio Inc | Handok Clean vs. Finebesteel |
| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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