Correlation Between Husteel and BYON
Can any of the company-specific risk be diversified away by investing in both Husteel and BYON 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 Husteel and BYON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Husteel and BYON Co, you can compare the effects of market volatilities on Husteel and BYON 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 Husteel with a short position of BYON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Husteel and BYON.
Diversification Opportunities for Husteel and BYON
Very good diversification
The 3 months correlation between Husteel and BYON is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Husteel and BYON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYON and Husteel 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 Husteel are associated (or correlated) with BYON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYON has no effect on the direction of Husteel i.e., Husteel and BYON go up and down completely randomly.
Pair Corralation between Husteel and BYON
Assuming the 90 days trading horizon Husteel is expected to generate 0.51 times more return on investment than BYON. However, Husteel is 1.97 times less risky than BYON. It trades about -0.01 of its potential returns per unit of risk. BYON Co is currently generating about -0.04 per unit of risk. If you would invest 527,416 in Husteel on November 3, 2024 and sell it today you would lose (82,916) from holding Husteel or give up 15.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Husteel vs. BYON Co
Performance |
| Timeline |
| Husteel |
| BYON |
Husteel and BYON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Husteel and BYON
The main advantage of trading using opposite Husteel and BYON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Husteel position performs unexpectedly, BYON 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 BYON will offset losses from the drop in BYON's long position.| Husteel vs. Hankook Furniture Co | Husteel vs. Seoul Food Industrial | Husteel vs. Hyunwoo Industrial Co | Husteel vs. Daiyang Metal Co |
| BYON vs. INNOX Advanced Materials | BYON vs. Seoyon Topmetal Co | BYON vs. Formetal Co | BYON vs. MetaLabs 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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