Correlation Between Heungkuk Metaltech and EyeGene
Can any of the company-specific risk be diversified away by investing in both Heungkuk Metaltech and EyeGene 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 Heungkuk Metaltech and EyeGene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heungkuk Metaltech CoLtd and EyeGene, you can compare the effects of market volatilities on Heungkuk Metaltech and EyeGene 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 Heungkuk Metaltech with a short position of EyeGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heungkuk Metaltech and EyeGene.
Diversification Opportunities for Heungkuk Metaltech and EyeGene
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heungkuk and EyeGene is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Heungkuk Metaltech CoLtd and EyeGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EyeGene and Heungkuk Metaltech 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 Heungkuk Metaltech CoLtd are associated (or correlated) with EyeGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EyeGene has no effect on the direction of Heungkuk Metaltech i.e., Heungkuk Metaltech and EyeGene go up and down completely randomly.
Pair Corralation between Heungkuk Metaltech and EyeGene
Assuming the 90 days trading horizon Heungkuk Metaltech CoLtd is expected to generate 0.89 times more return on investment than EyeGene. However, Heungkuk Metaltech CoLtd is 1.12 times less risky than EyeGene. It trades about 0.09 of its potential returns per unit of risk. EyeGene is currently generating about -0.08 per unit of risk. If you would invest 481,500 in Heungkuk Metaltech CoLtd on September 6, 2024 and sell it today you would earn a total of 15,500 from holding Heungkuk Metaltech CoLtd or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heungkuk Metaltech CoLtd vs. EyeGene
Performance |
| Timeline |
| Heungkuk Metaltech CoLtd |
| EyeGene |
Heungkuk Metaltech and EyeGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heungkuk Metaltech and EyeGene
The main advantage of trading using opposite Heungkuk Metaltech and EyeGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heungkuk Metaltech position performs unexpectedly, EyeGene 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 EyeGene will offset losses from the drop in EyeGene's long position.| Heungkuk Metaltech vs. AptaBio Therapeutics | Heungkuk Metaltech vs. Daewoo SBI SPAC | Heungkuk Metaltech vs. Dream Security co | Heungkuk Metaltech vs. Microfriend |
| EyeGene vs. Samwha Electronics Co | EyeGene vs. Daejoo Electronic Materials | EyeGene vs. Dongbang Transport Logistics | EyeGene vs. KyungIn Electronics 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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