Correlation Between Hansol Homedeco and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Hansol Homedeco and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Hansol Homedeco and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Homedeco and Duksan Hi.
Diversification Opportunities for Hansol Homedeco and Duksan Hi
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hansol and Duksan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Homedeco Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Hansol Homedeco i.e., Hansol Homedeco and Duksan Hi go up and down completely randomly.
Pair Corralation between Hansol Homedeco and Duksan Hi
Assuming the 90 days trading horizon Hansol Homedeco Co is expected to generate 0.66 times more return on investment than Duksan Hi. However, Hansol Homedeco Co is 1.52 times less risky than Duksan Hi. It trades about 0.0 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.01 per unit of risk. If you would invest 117,500 in Hansol Homedeco Co on October 30, 2024 and sell it today you would lose (10,000) from holding Hansol Homedeco Co or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Homedeco Co vs. Duksan Hi Metal
Performance |
| Timeline |
| Hansol Homedeco |
| Duksan Hi Metal |
Hansol Homedeco and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Homedeco and Duksan Hi
The main advantage of trading using opposite Hansol Homedeco and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Homedeco position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Hansol Homedeco vs. KakaoBank Corp | Hansol Homedeco vs. Seoul Food Industrial | Hansol Homedeco vs. FOODWELL Co | Hansol Homedeco vs. Lotte Non Life Insurance |
| Duksan Hi vs. Shinhan Inverse Silver | Duksan Hi vs. JYP Entertainment Corp | Duksan Hi vs. YG Entertainment | Duksan Hi vs. Barunson Entertainment Arts |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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