Correlation Between Hankook Steel and Atec
Can any of the company-specific risk be diversified away by investing in both Hankook Steel and Atec 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 Hankook Steel and Atec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankook Steel Co and Atec Co, you can compare the effects of market volatilities on Hankook Steel and Atec 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 Hankook Steel with a short position of Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankook Steel and Atec.
Diversification Opportunities for Hankook Steel and Atec
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hankook and Atec is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hankook Steel Co and Atec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec and Hankook Steel 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 Hankook Steel Co are associated (or correlated) with Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec has no effect on the direction of Hankook Steel i.e., Hankook Steel and Atec go up and down completely randomly.
Pair Corralation between Hankook Steel and Atec
Assuming the 90 days trading horizon Hankook Steel Co is expected to under-perform the Atec. But the stock apears to be less risky and, when comparing its historical volatility, Hankook Steel Co is 1.49 times less risky than Atec. The stock trades about 0.0 of its potential returns per unit of risk. The Atec Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,532,000 in Atec Co on September 13, 2024 and sell it today you would earn a total of 2,423,000 from holding Atec Co or generate 158.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankook Steel Co vs. Atec Co
Performance |
| Timeline |
| Hankook Steel |
| Atec |
Hankook Steel and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankook Steel and Atec
The main advantage of trading using opposite Hankook Steel and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankook Steel position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Hankook Steel vs. Display Tech Co | Hankook Steel vs. Ssangyong Information Communication | Hankook Steel vs. Korea Computer | Hankook Steel vs. Digital Power Communications |
| Atec vs. Cube Entertainment | Atec vs. Dreamus Company | Atec vs. LG Energy Solution | Atec vs. Dongwon System |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |