Correlation Between Nh Investment and Asiana Airlines
Can any of the company-specific risk be diversified away by investing in both Nh Investment and Asiana Airlines 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 Nh Investment and Asiana Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nh Investment And and Asiana Airlines, you can compare the effects of market volatilities on Nh Investment and Asiana Airlines 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 Nh Investment with a short position of Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and Asiana Airlines.
Diversification Opportunities for Nh Investment and Asiana Airlines
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 005945 and Asiana is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines and Nh Investment 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 Nh Investment And are associated (or correlated) with Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of Nh Investment i.e., Nh Investment and Asiana Airlines go up and down completely randomly.
Pair Corralation between Nh Investment and Asiana Airlines
Assuming the 90 days trading horizon Nh Investment is expected to generate 2.86 times less return on investment than Asiana Airlines. But when comparing it to its historical volatility, Nh Investment And is 2.91 times less risky than Asiana Airlines. It trades about 0.05 of its potential returns per unit of risk. Asiana Airlines is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 954,000 in Asiana Airlines on September 23, 2024 and sell it today you would earn a total of 57,000 from holding Asiana Airlines or generate 5.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nh Investment And vs. Asiana Airlines
Performance |
Timeline |
Nh Investment And |
Asiana Airlines |
Nh Investment and Asiana Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nh Investment and Asiana Airlines
The main advantage of trading using opposite Nh Investment and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' long position.Nh Investment vs. Hanwha InvestmentSecurities Co | ||
Nh Investment vs. Company K Partners | ||
Nh Investment vs. FnGuide | ||
Nh Investment vs. DSC Investment |
Asiana Airlines vs. Shinhan Inverse Copper | ||
Asiana Airlines vs. Kukil Metal Co | ||
Asiana Airlines vs. PJ Metal Co | ||
Asiana Airlines vs. Mirai Semiconductors 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |