Correlation Between HMM and CU Medical
Can any of the company-specific risk be diversified away by investing in both HMM and CU Medical 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 CU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HMM Co and CU Medical Systems, you can compare the effects of market volatilities on HMM and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMM and CU Medical.
Diversification Opportunities for HMM and CU Medical
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HMM and 115480 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HMM Co and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of HMM i.e., HMM and CU Medical go up and down completely randomly.
Pair Corralation between HMM and CU Medical
Assuming the 90 days trading horizon HMM Co is expected to generate 1.54 times more return on investment than CU Medical. However, HMM is 1.54 times more volatile than CU Medical Systems. It trades about 0.02 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.32 per unit of risk. If you would invest 1,786,000 in HMM Co on September 3, 2024 and sell it today you would earn a total of 10,000 from holding HMM Co or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMM Co vs. CU Medical Systems
Performance |
| Timeline |
| HMM Co |
| CU Medical Systems |
HMM and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMM and CU Medical
The main advantage of trading using opposite HMM and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMM position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.| HMM vs. Daeduck Electronics Co | HMM vs. DB Financial Investment | HMM vs. Shinil Electronics Co | HMM vs. Samyoung Electronics Co |
| CU Medical vs. AptaBio Therapeutics | CU Medical vs. KT Hitel | CU Medical vs. SillaJen | CU Medical vs. Cytogen |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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