Correlation Between Hancom and Total Soft
Can any of the company-specific risk be diversified away by investing in both Hancom and Total Soft 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 Hancom and Total Soft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hancom Inc and Total Soft Bank, you can compare the effects of market volatilities on Hancom and Total Soft 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 Hancom with a short position of Total Soft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hancom and Total Soft.
Diversification Opportunities for Hancom and Total Soft
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hancom and Total is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hancom Inc and Total Soft Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Soft Bank and Hancom 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 Hancom Inc are associated (or correlated) with Total Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Soft Bank has no effect on the direction of Hancom i.e., Hancom and Total Soft go up and down completely randomly.
Pair Corralation between Hancom and Total Soft
Assuming the 90 days trading horizon Hancom Inc is expected to generate 1.49 times more return on investment than Total Soft. However, Hancom is 1.49 times more volatile than Total Soft Bank. It trades about 0.07 of its potential returns per unit of risk. Total Soft Bank is currently generating about 0.02 per unit of risk. If you would invest 1,447,000 in Hancom Inc on September 4, 2024 and sell it today you would earn a total of 1,008,000 from holding Hancom Inc or generate 69.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hancom Inc vs. Total Soft Bank
Performance |
| Timeline |
| Hancom Inc |
| Total Soft Bank |
Hancom and Total Soft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hancom and Total Soft
The main advantage of trading using opposite Hancom and Total Soft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hancom position performs unexpectedly, Total Soft 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 Total Soft will offset losses from the drop in Total Soft's long position.| Hancom vs. Kukdong Oil Chemicals | Hancom vs. Sung Bo Chemicals | Hancom vs. AeroSpace Technology of | Hancom vs. QUALITAS SEMICONDUCTOR LTD |
| Total Soft vs. Alton Sports CoLtd | Total Soft vs. Kyung In Synthetic Corp | Total Soft vs. Shinhan Inverse Silver | Total Soft vs. Cuckoo Homesys 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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