Correlation Between Hankook Steel and Aniplus
Can any of the company-specific risk be diversified away by investing in both Hankook Steel and Aniplus 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 Aniplus 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 Aniplus, you can compare the effects of market volatilities on Hankook Steel and Aniplus 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 Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankook Steel and Aniplus.
Diversification Opportunities for Hankook Steel and Aniplus
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hankook and Aniplus is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hankook Steel Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus 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 Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of Hankook Steel i.e., Hankook Steel and Aniplus go up and down completely randomly.
Pair Corralation between Hankook Steel and Aniplus
Assuming the 90 days trading horizon Hankook Steel Co is expected to generate 3.46 times more return on investment than Aniplus. However, Hankook Steel is 3.46 times more volatile than Aniplus. It trades about 0.05 of its potential returns per unit of risk. Aniplus is currently generating about -0.1 per unit of risk. If you would invest 198,500 in Hankook Steel Co on September 5, 2024 and sell it today you would earn a total of 6,000 from holding Hankook Steel Co or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankook Steel Co vs. Aniplus
Performance |
| Timeline |
| Hankook Steel |
| Aniplus |
Hankook Steel and Aniplus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankook Steel and Aniplus
The main advantage of trading using opposite Hankook Steel and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankook Steel position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.| Hankook Steel vs. AptaBio Therapeutics | Hankook Steel vs. Daewoo SBI SPAC | Hankook Steel vs. Dream Security co | Hankook Steel vs. Microfriend |
| Aniplus vs. Hankook Steel Co | Aniplus vs. Finebesteel | Aniplus vs. Jeil Steel Mfg | Aniplus vs. NewFlex Technology 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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