Correlation Between NAU IB and Hanjin Transportation
Can any of the company-specific risk be diversified away by investing in both NAU IB and Hanjin Transportation 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 NAU IB and Hanjin Transportation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAU IB Capital and Hanjin Transportation Co, you can compare the effects of market volatilities on NAU IB and Hanjin Transportation 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 NAU IB with a short position of Hanjin Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAU IB and Hanjin Transportation.
Diversification Opportunities for NAU IB and Hanjin Transportation
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NAU and Hanjin is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NAU IB Capital and Hanjin Transportation Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjin Transportation and NAU IB 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 NAU IB Capital are associated (or correlated) with Hanjin Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjin Transportation has no effect on the direction of NAU IB i.e., NAU IB and Hanjin Transportation go up and down completely randomly.
Pair Corralation between NAU IB and Hanjin Transportation
Assuming the 90 days trading horizon NAU IB Capital is expected to generate 1.87 times more return on investment than Hanjin Transportation. However, NAU IB is 1.87 times more volatile than Hanjin Transportation Co. It trades about 0.02 of its potential returns per unit of risk. Hanjin Transportation Co is currently generating about 0.0 per unit of risk. If you would invest 127,209 in NAU IB Capital on September 13, 2024 and sell it today you would earn a total of 1,991 from holding NAU IB Capital or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.3% |
| Values | Daily Returns |
NAU IB Capital vs. Hanjin Transportation Co
Performance |
| Timeline |
| NAU IB Capital |
| Hanjin Transportation |
NAU IB and Hanjin Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAU IB and Hanjin Transportation
The main advantage of trading using opposite NAU IB and Hanjin Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAU IB position performs unexpectedly, Hanjin Transportation 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 Hanjin Transportation will offset losses from the drop in Hanjin Transportation's long position.| NAU IB vs. Hanjin Transportation Co | NAU IB vs. Husteel | NAU IB vs. BooKook Steel Co | NAU IB vs. Fine Besteel Co |
| Hanjin Transportation vs. Samsung Electronics Co | Hanjin Transportation vs. Samsung Electronics Co | Hanjin Transportation vs. SK Hynix | Hanjin Transportation vs. POSCO Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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