Correlation Between Humax Holdings and Worldex Industry
Can any of the company-specific risk be diversified away by investing in both Humax Holdings and Worldex Industry 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 Humax Holdings and Worldex Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humax Holdings Co and Worldex Industry Trading, you can compare the effects of market volatilities on Humax Holdings and Worldex Industry 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 Humax Holdings with a short position of Worldex Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humax Holdings and Worldex Industry.
Diversification Opportunities for Humax Holdings and Worldex Industry
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Humax and Worldex is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Humax Holdings Co and Worldex Industry Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldex Industry Trading and Humax Holdings 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 Humax Holdings Co are associated (or correlated) with Worldex Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldex Industry Trading has no effect on the direction of Humax Holdings i.e., Humax Holdings and Worldex Industry go up and down completely randomly.
Pair Corralation between Humax Holdings and Worldex Industry
Assuming the 90 days trading horizon Humax Holdings Co is expected to generate 3.43 times more return on investment than Worldex Industry. However, Humax Holdings is 3.43 times more volatile than Worldex Industry Trading. It trades about 0.21 of its potential returns per unit of risk. Worldex Industry Trading is currently generating about 0.05 per unit of risk. If you would invest 251,000 in Humax Holdings Co on November 3, 2024 and sell it today you would earn a total of 80,500 from holding Humax Holdings Co or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humax Holdings Co vs. Worldex Industry Trading
Performance |
| Timeline |
| Humax Holdings |
| Worldex Industry Trading |
Humax Holdings and Worldex Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humax Holdings and Worldex Industry
The main advantage of trading using opposite Humax Holdings and Worldex Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humax Holdings position performs unexpectedly, Worldex Industry 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 Worldex Industry will offset losses from the drop in Worldex Industry's long position.| Humax Holdings vs. Solution Advanced Technology | Humax Holdings vs. Adaptive Plasma Technology | Humax Holdings vs. Seoam Machinery Industry | Humax Holdings vs. Seohee Construction Co |
| Worldex Industry vs. WONIK Materials CoLtd | Worldex Industry vs. SS TECH | Worldex Industry vs. TES Co | Worldex Industry vs. LEENO Industrial |
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 CEOs Directory module to screen CEOs from public companies around the world.
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