Correlation Between Hansol Homedeco and HansBiomed
Can any of the company-specific risk be diversified away by investing in both Hansol Homedeco and HansBiomed 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 Homedeco and HansBiomed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansol Homedeco Co and HansBiomed, you can compare the effects of market volatilities on Hansol Homedeco and HansBiomed 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 Homedeco with a short position of HansBiomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Homedeco and HansBiomed.
Diversification Opportunities for Hansol Homedeco and HansBiomed
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hansol and HansBiomed is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Homedeco Co and HansBiomed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HansBiomed and Hansol Homedeco 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 Homedeco Co are associated (or correlated) with HansBiomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HansBiomed has no effect on the direction of Hansol Homedeco i.e., Hansol Homedeco and HansBiomed go up and down completely randomly.
Pair Corralation between Hansol Homedeco and HansBiomed
Assuming the 90 days trading horizon Hansol Homedeco Co is expected to generate 0.58 times more return on investment than HansBiomed. However, Hansol Homedeco Co is 1.73 times less risky than HansBiomed. It trades about -0.11 of its potential returns per unit of risk. HansBiomed is currently generating about -0.16 per unit of risk. If you would invest 73,000 in Hansol Homedeco Co on September 2, 2024 and sell it today you would lose (7,000) from holding Hansol Homedeco Co or give up 9.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Homedeco Co vs. HansBiomed
Performance |
| Timeline |
| Hansol Homedeco |
| HansBiomed |
Hansol Homedeco and HansBiomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Homedeco and HansBiomed
The main advantage of trading using opposite Hansol Homedeco and HansBiomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Homedeco position performs unexpectedly, HansBiomed 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 HansBiomed will offset losses from the drop in HansBiomed's long position.| Hansol Homedeco vs. AptaBio Therapeutics | Hansol Homedeco vs. Daewoo SBI SPAC | Hansol Homedeco vs. Dream Security co | Hansol Homedeco vs. Microfriend |
| HansBiomed vs. AptaBio Therapeutics | HansBiomed vs. KT Hitel | HansBiomed vs. SillaJen | HansBiomed vs. Cytogen |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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