Correlation Between Hansol Chemica and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Hansol Chemica and Korea Shipbuilding 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 Hansol Chemica and Korea Shipbuilding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansol Chemica and Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Hansol Chemica and Korea Shipbuilding 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 Hansol Chemica with a short position of Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Chemica and Korea Shipbuilding.
Diversification Opportunities for Hansol Chemica and Korea Shipbuilding
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hansol and Korea is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Chemica and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding and Hansol Chemica 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 Hansol Chemica are associated (or correlated) with Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Hansol Chemica i.e., Hansol Chemica and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Hansol Chemica and Korea Shipbuilding
Assuming the 90 days trading horizon Hansol Chemica is expected to under-perform the Korea Shipbuilding. But the stock apears to be less risky and, when comparing its historical volatility, Hansol Chemica is 1.32 times less risky than Korea Shipbuilding. The stock trades about -0.32 of its potential returns per unit of risk. The Korea Shipbuilding Offshore is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 22,300,000 in Korea Shipbuilding Offshore on November 4, 2024 and sell it today you would earn a total of 900,000 from holding Korea Shipbuilding Offshore or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Chemica vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Hansol Chemica |
| Korea Shipbuilding |
Hansol Chemica and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Chemica and Korea Shipbuilding
The main advantage of trading using opposite Hansol Chemica and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Chemica position performs unexpectedly, Korea Shipbuilding 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 Korea Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.| Hansol Chemica vs. Seoul Electronics Telecom | Hansol Chemica vs. Daol Investment Securities | Hansol Chemica vs. Sangsangin Investment Securities | Hansol Chemica vs. Golden Bridge Investment |
| Korea Shipbuilding vs. Woori Technology Investment | Korea Shipbuilding vs. Barunson Entertainment Arts | Korea Shipbuilding vs. SAMG Entertainment Co | Korea Shipbuilding vs. SBI Investment KOREA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |