Correlation Between Nh Investment and FnGuide
Can any of the company-specific risk be diversified away by investing in both Nh Investment and FnGuide 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 FnGuide 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 FnGuide, you can compare the effects of market volatilities on Nh Investment and FnGuide 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 FnGuide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nh Investment and FnGuide.
Diversification Opportunities for Nh Investment and FnGuide
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 005945 and FnGuide is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nh Investment And and FnGuide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FnGuide 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 FnGuide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FnGuide has no effect on the direction of Nh Investment i.e., Nh Investment and FnGuide go up and down completely randomly.
Pair Corralation between Nh Investment and FnGuide
Assuming the 90 days trading horizon Nh Investment And is expected to generate 0.43 times more return on investment than FnGuide. However, Nh Investment And is 2.34 times less risky than FnGuide. It trades about 0.29 of its potential returns per unit of risk. FnGuide is currently generating about -0.13 per unit of risk. If you would invest 1,124,709 in Nh Investment And on December 30, 2024 and sell it today you would earn a total of 148,291 from holding Nh Investment And or generate 13.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Nh Investment And vs. FnGuide
Performance |
Timeline |
Nh Investment And |
FnGuide |
Nh Investment and FnGuide Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nh Investment and FnGuide
The main advantage of trading using opposite Nh Investment and FnGuide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nh Investment position performs unexpectedly, FnGuide 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 FnGuide will offset losses from the drop in FnGuide's long position.Nh Investment vs. Miwon Chemical | Nh Investment vs. Namhae Chemical | Nh Investment vs. Seoam Machinery Industry | Nh Investment vs. Hyundai Engineering Construction |
FnGuide vs. KB Financial Group | FnGuide vs. Shinsegae Information Communication | FnGuide vs. DB Financial Investment | FnGuide vs. Shinhan Financial Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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