Correlation Between Han Kook and SundayToz Corp
Can any of the company-specific risk be diversified away by investing in both Han Kook and SundayToz Corp 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 Han Kook and SundayToz Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Han Kook Steel and SundayToz Corp, you can compare the effects of market volatilities on Han Kook and SundayToz Corp 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 Han Kook with a short position of SundayToz Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Han Kook and SundayToz Corp.
Diversification Opportunities for Han Kook and SundayToz Corp
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Han and SundayToz is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Han Kook Steel and SundayToz Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SundayToz Corp and Han Kook 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 Han Kook Steel are associated (or correlated) with SundayToz Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SundayToz Corp has no effect on the direction of Han Kook i.e., Han Kook and SundayToz Corp go up and down completely randomly.
Pair Corralation between Han Kook and SundayToz Corp
Assuming the 90 days trading horizon Han Kook is expected to generate 2.77 times less return on investment than SundayToz Corp. In addition to that, Han Kook is 1.09 times more volatile than SundayToz Corp. It trades about 0.0 of its total potential returns per unit of risk. SundayToz Corp is currently generating about 0.01 per unit of volatility. If you would invest 723,000 in SundayToz Corp on October 7, 2024 and sell it today you would lose (1,000.00) from holding SundayToz Corp or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Han Kook Steel vs. SundayToz Corp
Performance |
| Timeline |
| Han Kook Steel |
| SundayToz Corp |
Han Kook and SundayToz Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Han Kook and SundayToz Corp
The main advantage of trading using opposite Han Kook and SundayToz Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Han Kook position performs unexpectedly, SundayToz Corp 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 SundayToz Corp will offset losses from the drop in SundayToz Corp's long position.| Han Kook vs. Seah Steel Corp | Han Kook vs. Ajusteel Co | Han Kook vs. Ni Steel | Han Kook vs. Korea Steel Co |
| SundayToz Corp vs. Jb Financial | SundayToz Corp vs. Daelim Trading Co | SundayToz Corp vs. Incar Financial Service | SundayToz Corp vs. Golden Bridge Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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