Correlation Between Hanil Iron and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Hanil Iron and Puloon Technology 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 Hanil Iron and Puloon Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanil Iron Steel and Puloon Technology, you can compare the effects of market volatilities on Hanil Iron and Puloon Technology 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 Hanil Iron with a short position of Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanil Iron and Puloon Technology.
Diversification Opportunities for Hanil Iron and Puloon Technology
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hanil and Puloon is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hanil Iron Steel and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology and Hanil Iron 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 Hanil Iron Steel are associated (or correlated) with Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Hanil Iron i.e., Hanil Iron and Puloon Technology go up and down completely randomly.
Pair Corralation between Hanil Iron and Puloon Technology
Assuming the 90 days trading horizon Hanil Iron Steel is expected to under-perform the Puloon Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hanil Iron Steel is 2.4 times less risky than Puloon Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Puloon Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 618,000 in Puloon Technology on September 25, 2024 and sell it today you would earn a total of 85,000 from holding Puloon Technology or generate 13.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanil Iron Steel vs. Puloon Technology
Performance |
| Timeline |
| Hanil Iron Steel |
| Puloon Technology |
Hanil Iron and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanil Iron and Puloon Technology
The main advantage of trading using opposite Hanil Iron and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanil Iron position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| Hanil Iron vs. AptaBio Therapeutics | Hanil Iron vs. Wonbang Tech Co | Hanil Iron vs. Busan Industrial Co | Hanil Iron vs. Busan Ind |
| Puloon Technology vs. Hanil Iron Steel | Puloon Technology vs. Korea Electronic Certification | Puloon Technology vs. Insun Environment New | Puloon Technology vs. Okins Electronics Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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