Correlation Between EE HWA and KT Submarine
Can any of the company-specific risk be diversified away by investing in both EE HWA and KT Submarine 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 EE HWA and KT Submarine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EE HWA Construction Co and KT Submarine Co, you can compare the effects of market volatilities on EE HWA and KT Submarine 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 EE HWA with a short position of KT Submarine. Check out your portfolio center. Please also check ongoing floating volatility patterns of EE HWA and KT Submarine.
Diversification Opportunities for EE HWA and KT Submarine
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 001840 and 060370 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding EE HWA Construction Co and KT Submarine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Submarine and EE HWA 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 EE HWA Construction Co are associated (or correlated) with KT Submarine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Submarine has no effect on the direction of EE HWA i.e., EE HWA and KT Submarine go up and down completely randomly.
Pair Corralation between EE HWA and KT Submarine
Assuming the 90 days trading horizon EE HWA Construction Co is expected to generate 1.84 times more return on investment than KT Submarine. However, EE HWA is 1.84 times more volatile than KT Submarine Co. It trades about 0.13 of its potential returns per unit of risk. KT Submarine Co is currently generating about -0.04 per unit of risk. If you would invest 239,000 in EE HWA Construction Co on August 28, 2024 and sell it today you would earn a total of 46,500 from holding EE HWA Construction Co or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EE HWA Construction Co vs. KT Submarine Co
Performance |
| Timeline |
| EE HWA Construction |
| KT Submarine |
EE HWA and KT Submarine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EE HWA and KT Submarine
The main advantage of trading using opposite EE HWA and KT Submarine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EE HWA position performs unexpectedly, KT Submarine 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 KT Submarine will offset losses from the drop in KT Submarine's long position.| EE HWA vs. Hanyang ENG Co | EE HWA vs. Nam Hwa Construction | EE HWA vs. KT Submarine Co | EE HWA vs. Yooshin Engineering |
| KT Submarine vs. Hanyang ENG Co | KT Submarine vs. Nam Hwa Construction | KT Submarine vs. Yooshin Engineering | KT Submarine vs. Sebo Manufacturing Engineering |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |