Correlation Between Nh Investment and Asiana Airlines

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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

005945AsianaDiversified Away005945AsianaDiversified Away100%
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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Nh Investment And  vs.  Asiana Airlines

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 051015
JavaScript chart by amCharts 3.21.15005945 020560
       Timeline  
Nh Investment And 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Nh Investment And are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Nh Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec11,70011,80011,90012,00012,10012,20012,30012,400
Asiana Airlines 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Asiana Airlines are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Asiana Airlines may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec9,0009,50010,00010,50011,00011,500

Nh Investment and Asiana Airlines Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.49-1.86-1.24-0.610.01070.641.291.932.58 0.10.20.30.40.50.6
JavaScript chart by amCharts 3.21.15005945 020560
       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.
The idea behind Nh Investment And and Asiana Airlines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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.

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