Correlation Between Doosan and Humasis
Can any of the company-specific risk be diversified away by investing in both Doosan and Humasis 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 Doosan and Humasis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doosan and Humasis Co, you can compare the effects of market volatilities on Doosan and Humasis 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 Doosan with a short position of Humasis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan and Humasis.
Diversification Opportunities for Doosan and Humasis
Very good diversification
The 3 months correlation between Doosan and Humasis is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Doosan and Humasis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humasis and Doosan 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 Doosan are associated (or correlated) with Humasis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humasis has no effect on the direction of Doosan i.e., Doosan and Humasis go up and down completely randomly.
Pair Corralation between Doosan and Humasis
Assuming the 90 days trading horizon Doosan is expected to generate 1.46 times more return on investment than Humasis. However, Doosan is 1.46 times more volatile than Humasis Co. It trades about 0.22 of its potential returns per unit of risk. Humasis Co is currently generating about 0.0 per unit of risk. If you would invest 26,500,000 in Doosan on November 3, 2024 and sell it today you would earn a total of 6,750,000 from holding Doosan or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doosan vs. Humasis Co
Performance |
| Timeline |
| Doosan |
| Humasis |
Doosan and Humasis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan and Humasis
The main advantage of trading using opposite Doosan and Humasis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan position performs unexpectedly, Humasis 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 Humasis will offset losses from the drop in Humasis' long position.| Doosan vs. Daelim Trading Co | Doosan vs. Golden Bridge Investment | Doosan vs. Daol Investment Securities | Doosan vs. Woori Technology Investment |
| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |