Correlation Between Busan Ind and HLB Power
Can any of the company-specific risk be diversified away by investing in both Busan Ind and HLB Power 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 Busan Ind and HLB Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Busan Ind and HLB Power Co, you can compare the effects of market volatilities on Busan Ind and HLB Power 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 Busan Ind with a short position of HLB Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Ind and HLB Power.
Diversification Opportunities for Busan Ind and HLB Power
Pay attention - limited upside
The 3 months correlation between Busan and HLB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Busan Ind and HLB Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLB Power and Busan Ind 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 Busan Ind are associated (or correlated) with HLB Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLB Power has no effect on the direction of Busan Ind i.e., Busan Ind and HLB Power go up and down completely randomly.
Pair Corralation between Busan Ind and HLB Power
If you would invest 5,680,000 in Busan Ind on September 15, 2024 and sell it today you would earn a total of 3,120,000 from holding Busan Ind or generate 54.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Busan Ind vs. HLB Power Co
Performance |
| Timeline |
| Busan Ind |
| HLB Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Busan Ind and HLB Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Ind and HLB Power
The main advantage of trading using opposite Busan Ind and HLB Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Ind position performs unexpectedly, HLB Power 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 HLB Power will offset losses from the drop in HLB Power's long position.| Busan Ind vs. Samsung Electronics Co | Busan Ind vs. Samsung Electronics Co | Busan Ind vs. LG Energy Solution | Busan Ind vs. SK Hynix |
| HLB Power vs. FOODWELL Co | HLB Power vs. Sempio Foods Co | HLB Power vs. Sung Bo Chemicals | HLB Power vs. CKH Food Health |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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