Correlation Between Hanjin Transportation and PanGen Biotech
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and PanGen Biotech 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 Hanjin Transportation and PanGen Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and PanGen Biotech, you can compare the effects of market volatilities on Hanjin Transportation and PanGen Biotech 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 Hanjin Transportation with a short position of PanGen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and PanGen Biotech.
Diversification Opportunities for Hanjin Transportation and PanGen Biotech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanjin and PanGen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and PanGen Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PanGen Biotech and Hanjin Transportation 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 Hanjin Transportation Co are associated (or correlated) with PanGen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PanGen Biotech has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and PanGen Biotech go up and down completely randomly.
Pair Corralation between Hanjin Transportation and PanGen Biotech
If you would invest 1,881,123 in Hanjin Transportation Co on October 25, 2024 and sell it today you would earn a total of 72,877 from holding Hanjin Transportation Co or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Hanjin Transportation Co vs. PanGen Biotech
Performance |
| Timeline |
| Hanjin Transportation |
| PanGen Biotech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Hanjin Transportation and PanGen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and PanGen Biotech
The main advantage of trading using opposite Hanjin Transportation and PanGen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, PanGen Biotech 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 PanGen Biotech will offset losses from the drop in PanGen Biotech's long position.| Hanjin Transportation vs. Lotte Data Communication | Hanjin Transportation vs. Lotte Chilsung Beverage | Hanjin Transportation vs. Iljin Display | Hanjin Transportation vs. Korea Computer |
| PanGen Biotech vs. Digital Power Communications | PanGen Biotech vs. Wireless Power Amplifier | PanGen Biotech vs. Daou Technology | PanGen Biotech vs. InnoTherapy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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