Correlation Between Samsung Special and Nh Investment
Can any of the company-specific risk be diversified away by investing in both Samsung Special 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 Samsung Special and Nh Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Special Purpose and Nh Investment And, you can compare the effects of market volatilities on Samsung Special 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 Samsung Special with a short position of Nh Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Special and Nh Investment.
Diversification Opportunities for Samsung Special and Nh Investment
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and 005945 is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Special Purpose and Nh Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nh Investment And and Samsung Special 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 Samsung Special Purpose 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 And has no effect on the direction of Samsung Special i.e., Samsung Special and Nh Investment go up and down completely randomly.
Pair Corralation between Samsung Special and Nh Investment
Assuming the 90 days trading horizon Samsung Special Purpose is expected to under-perform the Nh Investment. In addition to that, Samsung Special is 2.75 times more volatile than Nh Investment And. It trades about -0.03 of its total potential returns per unit of risk. Nh Investment And is currently generating about 0.11 per unit of volatility. If you would invest 802,156 in Nh Investment And on September 3, 2024 and sell it today you would earn a total of 405,844 from holding Nh Investment And or generate 50.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Special Purpose vs. Nh Investment And
Performance |
| Timeline |
| Samsung Special Purpose |
| Nh Investment And |
Samsung Special and Nh Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Special and Nh Investment
The main advantage of trading using opposite Samsung Special and Nh Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Special 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.| Samsung Special vs. Daelim Industrial Co | Samsung Special vs. Samhyun Steel Co | Samsung Special vs. Daehan Steel | Samsung Special vs. Hankook Steel Co |
| Nh Investment vs. Hanwha InvestmentSecurities Co | Nh Investment vs. Samsung Special Purpose | Nh Investment vs. YeSUN Tech 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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