Correlation Between Daehan Synthetic and Hancom
Can any of the company-specific risk be diversified away by investing in both Daehan Synthetic and Hancom 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 Daehan Synthetic and Hancom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daehan Synthetic Fiber and Hancom Inc, you can compare the effects of market volatilities on Daehan Synthetic and Hancom 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 Daehan Synthetic with a short position of Hancom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daehan Synthetic and Hancom.
Diversification Opportunities for Daehan Synthetic and Hancom
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Daehan and Hancom is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Daehan Synthetic Fiber and Hancom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancom Inc and Daehan Synthetic 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 Daehan Synthetic Fiber are associated (or correlated) with Hancom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hancom Inc has no effect on the direction of Daehan Synthetic i.e., Daehan Synthetic and Hancom go up and down completely randomly.
Pair Corralation between Daehan Synthetic and Hancom
Assuming the 90 days trading horizon Daehan Synthetic Fiber is expected to under-perform the Hancom. But the stock apears to be less risky and, when comparing its historical volatility, Daehan Synthetic Fiber is 6.41 times less risky than Hancom. The stock trades about -0.17 of its potential returns per unit of risk. The Hancom Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,818,000 in Hancom Inc on September 8, 2024 and sell it today you would earn a total of 307,000 from holding Hancom Inc or generate 16.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Daehan Synthetic Fiber vs. Hancom Inc
Performance |
Timeline |
Daehan Synthetic Fiber |
Hancom Inc |
Daehan Synthetic and Hancom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Daehan Synthetic and Hancom
The main advantage of trading using opposite Daehan Synthetic and Hancom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daehan Synthetic position performs unexpectedly, Hancom 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 Hancom will offset losses from the drop in Hancom's long position.Daehan Synthetic vs. AptaBio Therapeutics | Daehan Synthetic vs. Daewoo SBI SPAC | Daehan Synthetic vs. Dream Security co | Daehan Synthetic vs. Microfriend |
Hancom vs. Hyundai Home Shopping | Hancom vs. Hansol Homedeco Co | Hancom vs. Handok Clean Tech | Hancom vs. Seoyon Topmetal 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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