Correlation Between Innometry and NAU IB
Can any of the company-specific risk be diversified away by investing in both Innometry and NAU IB 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 Innometry and NAU IB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and NAU IB Capital, you can compare the effects of market volatilities on Innometry and NAU IB 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 Innometry with a short position of NAU IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and NAU IB.
Diversification Opportunities for Innometry and NAU IB
Excellent diversification
The 3 months correlation between Innometry and NAU is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Innometry Co and NAU IB Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAU IB Capital and Innometry 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 Innometry Co are associated (or correlated) with NAU IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAU IB Capital has no effect on the direction of Innometry i.e., Innometry and NAU IB go up and down completely randomly.
Pair Corralation between Innometry and NAU IB
Assuming the 90 days trading horizon Innometry Co is expected to generate 0.29 times more return on investment than NAU IB. However, Innometry Co is 3.45 times less risky than NAU IB. It trades about -0.01 of its potential returns per unit of risk. NAU IB Capital is currently generating about -0.06 per unit of risk. If you would invest 752,000 in Innometry Co on October 23, 2024 and sell it today you would lose (5,000) from holding Innometry Co or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. NAU IB Capital
Performance |
| Timeline |
| Innometry |
| NAU IB Capital |
Innometry and NAU IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and NAU IB
The main advantage of trading using opposite Innometry and NAU IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry position performs unexpectedly, NAU IB 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 NAU IB will offset losses from the drop in NAU IB's long position.| Innometry vs. Korea Investment Holdings | Innometry vs. CKH Food Health | Innometry vs. Atinum Investment Co | Innometry vs. Daelim Trading Co |
| NAU IB vs. Amogreentech Co | NAU IB vs. Daishin Information Communications | NAU IB vs. Wonbang Tech Co | NAU IB vs. Mobileleader CoLtd |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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