Correlation Between Hannong Chemicals and E Investment
Can any of the company-specific risk be diversified away by investing in both Hannong Chemicals and E Investment 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 Hannong Chemicals and E Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hannong Chemicals and E Investment Development, you can compare the effects of market volatilities on Hannong Chemicals and E Investment 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 Hannong Chemicals with a short position of E Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hannong Chemicals and E Investment.
Diversification Opportunities for Hannong Chemicals and E Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hannong and 093230 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hannong Chemicals and E Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Investment Development and Hannong Chemicals 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 Hannong Chemicals are associated (or correlated) with E Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Investment Development has no effect on the direction of Hannong Chemicals i.e., Hannong Chemicals and E Investment go up and down completely randomly.
Pair Corralation between Hannong Chemicals and E Investment
If you would invest 1,647,016 in Hannong Chemicals on November 3, 2024 and sell it today you would lose (278,016) from holding Hannong Chemicals or give up 16.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hannong Chemicals vs. E Investment Development
Performance |
| Timeline |
| Hannong Chemicals |
| E Investment Development |
Hannong Chemicals and E Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hannong Chemicals and E Investment
The main advantage of trading using opposite Hannong Chemicals and E Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hannong Chemicals position performs unexpectedly, E Investment 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 E Investment will offset losses from the drop in E Investment's long position.| Hannong Chemicals vs. Tae Kyung Chemical | Hannong Chemicals vs. Lotte Data Communication | Hannong Chemicals vs. Miwon Chemical | Hannong Chemicals vs. Namhae Chemical |
| E Investment vs. Seoul Food Industrial | E Investment vs. Vissem Electronics Co | E Investment vs. Daeduck Electronics Co | E Investment vs. Seoul Electronics Telecom |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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