Correlation Between Stic Investments and Hwangkum Steel
Can any of the company-specific risk be diversified away by investing in both Stic Investments and Hwangkum Steel 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 Stic Investments and Hwangkum Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and Hwangkum Steel Technology, you can compare the effects of market volatilities on Stic Investments and Hwangkum Steel 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 Stic Investments with a short position of Hwangkum Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Hwangkum Steel.
Diversification Opportunities for Stic Investments and Hwangkum Steel
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stic and Hwangkum is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Hwangkum Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwangkum Steel Technology and Stic Investments 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 Stic Investments are associated (or correlated) with Hwangkum Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwangkum Steel Technology has no effect on the direction of Stic Investments i.e., Stic Investments and Hwangkum Steel go up and down completely randomly.
Pair Corralation between Stic Investments and Hwangkum Steel
Assuming the 90 days trading horizon Stic Investments is expected to generate 1.27 times more return on investment than Hwangkum Steel. However, Stic Investments is 1.27 times more volatile than Hwangkum Steel Technology. It trades about 0.06 of its potential returns per unit of risk. Hwangkum Steel Technology is currently generating about -0.03 per unit of risk. If you would invest 511,338 in Stic Investments on September 26, 2024 and sell it today you would earn a total of 373,662 from holding Stic Investments or generate 73.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. Hwangkum Steel Technology
Performance |
| Timeline |
| Stic Investments |
| Hwangkum Steel Technology |
Stic Investments and Hwangkum Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and Hwangkum Steel
The main advantage of trading using opposite Stic Investments and Hwangkum Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, Hwangkum Steel 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 Hwangkum Steel will offset losses from the drop in Hwangkum Steel's long position.| Stic Investments vs. Dongsin Engineering Construction | Stic Investments vs. Doosan Fuel Cell | Stic Investments vs. Daishin Balance 1 | Stic Investments vs. Total Soft Bank |
| Hwangkum Steel vs. Stic Investments | Hwangkum Steel vs. Polaris Office Corp | Hwangkum Steel vs. SBI Investment KOREA | Hwangkum Steel vs. Dongil Metal 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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