Correlation Between Hansol Chemical and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Hansol Chemical 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 Chemical 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 Chemical Co and Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Hansol Chemical 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 Chemical with a short position of Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Chemical and Korea Shipbuilding.
Diversification Opportunities for Hansol Chemical and Korea Shipbuilding
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hansol and Korea is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Chemical Co 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 Chemical 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 Chemical Co 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 Chemical i.e., Hansol Chemical and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Hansol Chemical and Korea Shipbuilding
Assuming the 90 days trading horizon Hansol Chemical Co is expected to under-perform the Korea Shipbuilding. In addition to that, Hansol Chemical is 1.06 times more volatile than Korea Shipbuilding Offshore. It trades about -0.04 of its total potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.11 per unit of volatility. If you would invest 7,620,000 in Korea Shipbuilding Offshore on October 14, 2024 and sell it today you would earn a total of 16,380,000 from holding Korea Shipbuilding Offshore or generate 214.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Chemical Co vs. Korea Shipbuilding Offshore
Performance |
| Timeline |
| Hansol Chemical |
| Korea Shipbuilding |
Hansol Chemical and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Chemical and Korea Shipbuilding
The main advantage of trading using opposite Hansol Chemical and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Chemical 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 Chemical vs. Mobile Appliance | Hansol Chemical vs. Dongwoo Farm To | Hansol Chemical vs. Sempio Foods Co | Hansol Chemical vs. Hanjin Transportation Co |
| Korea Shipbuilding vs. Daewoo Electronic Components | Korea Shipbuilding vs. Vissem Electronics Co | Korea Shipbuilding vs. TK Chemical | Korea Shipbuilding vs. Hansol Chemical Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |