Correlation Between HMM and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both HMM and Hankukpackage 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 HMM and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HMM Co and Hankukpackage Co, you can compare the effects of market volatilities on HMM and Hankukpackage 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 HMM with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMM and Hankukpackage.
Diversification Opportunities for HMM and Hankukpackage
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HMM and Hankukpackage is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding HMM Co and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and HMM 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 HMM Co are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of HMM i.e., HMM and Hankukpackage go up and down completely randomly.
Pair Corralation between HMM and Hankukpackage
Assuming the 90 days trading horizon HMM Co is expected to generate 1.43 times more return on investment than Hankukpackage. However, HMM is 1.43 times more volatile than Hankukpackage Co. It trades about -0.01 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.03 per unit of risk. If you would invest 1,909,000 in HMM Co on September 3, 2024 and sell it today you would lose (113,000) from holding HMM Co or give up 5.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMM Co vs. Hankukpackage Co
Performance |
| Timeline |
| HMM Co |
| Hankukpackage |
HMM and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMM and Hankukpackage
The main advantage of trading using opposite HMM and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMM position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| HMM vs. Daeduck Electronics Co | HMM vs. DB Financial Investment | HMM vs. Shinil Electronics Co | HMM vs. Samyoung Electronics Co |
| Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. UNISEM Co | Hankukpackage vs. RPBio Inc | Hankukpackage vs. Finebesteel |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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