Correlation Between Hanjin Transportation and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Hanjin Transportation and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and DAEDUCK ELECTRONICS.
Diversification Opportunities for Hanjin Transportation and DAEDUCK ELECTRONICS
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanjin and DAEDUCK is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Hanjin Transportation and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to under-perform the DAEDUCK ELECTRONICS. But the stock apears to be less risky and, when comparing its historical volatility, Hanjin Transportation Co is 1.26 times less risky than DAEDUCK ELECTRONICS. The stock trades about -0.14 of its potential returns per unit of risk. The DAEDUCK ELECTRONICS CoLtd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 798,000 in DAEDUCK ELECTRONICS CoLtd on August 27, 2024 and sell it today you would earn a total of 11,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjin Transportation Co vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Hanjin Transportation |
| DAEDUCK ELECTRONICS CoLtd |
Hanjin Transportation and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Hanjin Transportation and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| Hanjin Transportation vs. AptaBio Therapeutics | Hanjin Transportation vs. Daewoo SBI SPAC | Hanjin Transportation vs. Dream Security co | Hanjin Transportation vs. Microfriend |
| DAEDUCK ELECTRONICS vs. MEDIANA CoLtd | DAEDUCK ELECTRONICS vs. Hanjin Transportation Co | DAEDUCK ELECTRONICS vs. Barunson Entertainment Arts | DAEDUCK ELECTRONICS vs. Tamul Multimedia 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |