Correlation Between Bosung Power and Handok Clean
Can any of the company-specific risk be diversified away by investing in both Bosung Power and Handok Clean 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 Bosung Power and Handok Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosung Power Technology and Handok Clean Tech, you can compare the effects of market volatilities on Bosung Power and Handok Clean 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 Bosung Power with a short position of Handok Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and Handok Clean.
Diversification Opportunities for Bosung Power and Handok Clean
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosung and Handok is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and Handok Clean Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handok Clean Tech and Bosung Power 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 Bosung Power Technology are associated (or correlated) with Handok Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handok Clean Tech has no effect on the direction of Bosung Power i.e., Bosung Power and Handok Clean go up and down completely randomly.
Pair Corralation between Bosung Power and Handok Clean
Assuming the 90 days trading horizon Bosung Power Technology is expected to generate 1.1 times more return on investment than Handok Clean. However, Bosung Power is 1.1 times more volatile than Handok Clean Tech. It trades about 0.4 of its potential returns per unit of risk. Handok Clean Tech is currently generating about 0.26 per unit of risk. If you would invest 261,500 in Bosung Power Technology on October 22, 2024 and sell it today you would earn a total of 41,000 from holding Bosung Power Technology or generate 15.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosung Power Technology vs. Handok Clean Tech
Performance |
| Timeline |
| Bosung Power Technology |
| Handok Clean Tech |
Bosung Power and Handok Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and Handok Clean
The main advantage of trading using opposite Bosung Power and Handok Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, Handok Clean 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 Handok Clean will offset losses from the drop in Handok Clean's long position.| Bosung Power vs. Korea Information Communications | Bosung Power vs. Hanmi Semiconductor Co | Bosung Power vs. Automobile Pc | Bosung Power vs. Wireless Power Amplifier |
| Handok Clean vs. Jeju Beer Co | Handok Clean vs. Woori Technology | Handok Clean vs. Hana Technology Co | Handok Clean vs. Ilji Technology 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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