Correlation Between Foodnamoo and NICE Information
Can any of the company-specific risk be diversified away by investing in both Foodnamoo and NICE 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 Foodnamoo and NICE Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foodnamoo and NICE Information Service, you can compare the effects of market volatilities on Foodnamoo and NICE 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 Foodnamoo with a short position of NICE Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foodnamoo and NICE Information.
Diversification Opportunities for Foodnamoo and NICE Information
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Foodnamoo and NICE is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Foodnamoo and NICE Information Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NICE Information Service and Foodnamoo 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 Foodnamoo are associated (or correlated) with NICE Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NICE Information Service has no effect on the direction of Foodnamoo i.e., Foodnamoo and NICE Information go up and down completely randomly.
Pair Corralation between Foodnamoo and NICE Information
Assuming the 90 days trading horizon Foodnamoo is expected to under-perform the NICE Information. In addition to that, Foodnamoo is 1.88 times more volatile than NICE Information Service. It trades about -0.05 of its total potential returns per unit of risk. NICE Information Service is currently generating about 0.01 per unit of volatility. If you would invest 1,184,850 in NICE Information Service on November 6, 2024 and sell it today you would earn a total of 42,150 from holding NICE Information Service or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foodnamoo vs. NICE Information Service
Performance |
| Timeline |
| Foodnamoo |
| NICE Information Service |
Foodnamoo and NICE Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foodnamoo and NICE Information
The main advantage of trading using opposite Foodnamoo and NICE Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foodnamoo position performs unexpectedly, NICE 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 NICE Information will offset losses from the drop in NICE Information's long position.| Foodnamoo vs. Seoyon Topmetal Co | Foodnamoo vs. Hyundai Engineering Construction | Foodnamoo vs. Daelim Industrial Co | Foodnamoo vs. Kyeryong Construction Industrial |
| NICE Information vs. SCI Information Service | NICE Information vs. Lotte Data Communication | NICE Information vs. Seoul Electronics Telecom | NICE Information vs. Kisan Telecom 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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