Correlation Between KakaoBank Corp and NH Investment
Can any of the company-specific risk be diversified away by investing in both KakaoBank Corp 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 KakaoBank Corp and NH Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KakaoBank Corp and NH Investment Securities, you can compare the effects of market volatilities on KakaoBank Corp 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 KakaoBank Corp with a short position of NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KakaoBank Corp and NH Investment.
Diversification Opportunities for KakaoBank Corp and NH Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KakaoBank and 550022 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KakaoBank Corp 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 KakaoBank Corp 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 KakaoBank Corp 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 KakaoBank Corp i.e., KakaoBank Corp and NH Investment go up and down completely randomly.
Pair Corralation between KakaoBank Corp and NH Investment
If you would invest 2,050,000 in KakaoBank Corp on September 13, 2024 and sell it today you would earn a total of 320,000 from holding KakaoBank Corp or generate 15.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KakaoBank Corp vs. NH Investment Securities
Performance |
| Timeline |
| KakaoBank Corp |
| NH Investment Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KakaoBank Corp and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KakaoBank Corp and NH Investment
The main advantage of trading using opposite KakaoBank Corp and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KakaoBank Corp 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.| KakaoBank Corp vs. Shinhan Financial Group | KakaoBank Corp vs. Hana Financial | KakaoBank Corp vs. Woori Financial Group | KakaoBank Corp vs. Industrial Bank |
| NH Investment vs. Eagon Industrial Co | NH Investment vs. Samhwa Paint Industrial | NH Investment vs. LG Household Healthcare | NH Investment vs. Miwon Chemicals 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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