Correlation Between NAU IB and Amogreentech
Can any of the company-specific risk be diversified away by investing in both NAU IB and Amogreentech 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 Amogreentech 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 Amogreentech Co, you can compare the effects of market volatilities on NAU IB and Amogreentech 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 Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAU IB and Amogreentech.
Diversification Opportunities for NAU IB and Amogreentech
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NAU and Amogreentech is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding NAU IB Capital and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of NAU IB i.e., NAU IB and Amogreentech go up and down completely randomly.
Pair Corralation between NAU IB and Amogreentech
Assuming the 90 days trading horizon NAU IB Capital is expected to under-perform the Amogreentech. In addition to that, NAU IB is 1.08 times more volatile than Amogreentech Co. It trades about -0.37 of its total potential returns per unit of risk. Amogreentech Co is currently generating about -0.06 per unit of volatility. If you would invest 590,000 in Amogreentech Co on November 3, 2024 and sell it today you would lose (17,000) from holding Amogreentech Co or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAU IB Capital vs. Amogreentech Co
Performance |
| Timeline |
| NAU IB Capital |
| Amogreentech |
NAU IB and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAU IB and Amogreentech
The main advantage of trading using opposite NAU IB and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAU IB position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| NAU IB vs. Pureun Mutual Savings | NAU IB vs. Jb Financial | NAU IB vs. Jeong Moon Information | NAU IB vs. Korea Information Engineering |
| Amogreentech vs. Seoam Machinery Industry | Amogreentech vs. Jb Financial | Amogreentech vs. Nam Hwa Construction | Amogreentech vs. Hanshin Construction 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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