Correlation Between Zinus and Handok Clean
Can any of the company-specific risk be diversified away by investing in both Zinus and Handok Clean 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 Zinus and Handok Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinus Inc and Handok Clean Tech, you can compare the effects of market volatilities on Zinus and Handok Clean 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 Zinus with a short position of Handok Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinus and Handok Clean.
Diversification Opportunities for Zinus and Handok Clean
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zinus and Handok is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Zinus Inc and Handok Clean Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handok Clean Tech and Zinus 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 Zinus Inc are associated (or correlated) with Handok Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handok Clean Tech has no effect on the direction of Zinus i.e., Zinus and Handok Clean go up and down completely randomly.
Pair Corralation between Zinus and Handok Clean
Assuming the 90 days trading horizon Zinus Inc is expected to generate 2.09 times more return on investment than Handok Clean. However, Zinus is 2.09 times more volatile than Handok Clean Tech. It trades about 0.39 of its potential returns per unit of risk. Handok Clean Tech is currently generating about 0.54 per unit of risk. If you would invest 2,140,000 in Zinus Inc on October 11, 2024 and sell it today you would earn a total of 495,000 from holding Zinus Inc or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinus Inc vs. Handok Clean Tech
Performance |
| Timeline |
| Zinus Inc |
| Handok Clean Tech |
Zinus and Handok Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinus and Handok Clean
The main advantage of trading using opposite Zinus and Handok Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinus position performs unexpectedly, Handok Clean 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 Handok Clean will offset losses from the drop in Handok Clean's long position.| Zinus vs. Handok Clean Tech | Zinus vs. LG Display Co | Zinus vs. Iljin Display | Zinus vs. Nice Information Telecommunication |
| Handok Clean vs. Heungkuk Metaltech CoLtd | Handok Clean vs. Seoul Electronics Telecom | Handok Clean vs. Kbi Metal Co | Handok Clean vs. Hyundai Home Shopping |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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