Correlation Between Namyang Dairy and Actoz Soft

Can any of the company-specific risk be diversified away by investing in both Namyang Dairy and Actoz Soft 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 Namyang Dairy and Actoz Soft into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Namyang Dairy and Actoz Soft CoLtd, you can compare the effects of market volatilities on Namyang Dairy and Actoz Soft 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 Namyang Dairy with a short position of Actoz Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namyang Dairy and Actoz Soft.

Diversification Opportunities for Namyang Dairy and Actoz Soft

-0.47

Correlation Coefficient

Namyang Dairy  Actoz Soft

Very good diversification

The 3 months correlation between Namyang and Actoz is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Namyang Dairy and Actoz Soft CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actoz Soft CoLtd and Namyang Dairy 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 Namyang Dairy are associated (or correlated) with Actoz Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actoz Soft CoLtd has no effect on the direction of Namyang Dairy i.e., Namyang Dairy and Actoz Soft go up and down completely randomly.

Pair Corralation between Namyang Dairy and Actoz Soft

If you would invest (100.00) in Actoz Soft CoLtd on September 25, 2024 and sell it today you would earn a total of  100.00  from holding Actoz Soft CoLtd or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Namyang Dairy  vs.  Actoz Soft CoLtd

Namyang Dairy

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Namyang Dairy are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Namyang Dairy sustained solid returns over the last few months and may actually be approaching a breakup point.

Actoz Soft CoLtd

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Actoz Soft CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Actoz Soft may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Namyang Dairy and Actoz Soft

The main advantage of trading using opposite Namyang Dairy and Actoz Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namyang Dairy position performs unexpectedly, Actoz Soft 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 Actoz Soft will offset losses from the drop in Actoz Soft's long position.

The idea behind Namyang Dairy and Actoz Soft CoLtd 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.