Correlation Between Hwangkum Steel and Korea Refract
Can any of the company-specific risk be diversified away by investing in both Hwangkum Steel and Korea Refract 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 Hwangkum Steel and Korea Refract into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwangkum Steel Technology and Korea Refract, you can compare the effects of market volatilities on Hwangkum Steel and Korea Refract 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 Hwangkum Steel with a short position of Korea Refract. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwangkum Steel and Korea Refract.
Diversification Opportunities for Hwangkum Steel and Korea Refract
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hwangkum and Korea is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hwangkum Steel Technology and Korea Refract in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Refract and Hwangkum 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 Hwangkum Steel Technology are associated (or correlated) with Korea Refract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Refract has no effect on the direction of Hwangkum Steel i.e., Hwangkum Steel and Korea Refract go up and down completely randomly.
Pair Corralation between Hwangkum Steel and Korea Refract
Assuming the 90 days trading horizon Hwangkum Steel Technology is expected to under-perform the Korea Refract. But the stock apears to be less risky and, when comparing its historical volatility, Hwangkum Steel Technology is 1.55 times less risky than Korea Refract. The stock trades about -0.03 of its potential returns per unit of risk. The Korea Refract is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 280,701 in Korea Refract on September 13, 2024 and sell it today you would lose (71,701) from holding Korea Refract or give up 25.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwangkum Steel Technology vs. Korea Refract
Performance |
| Timeline |
| Hwangkum Steel Technology |
| Korea Refract |
Hwangkum Steel and Korea Refract Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwangkum Steel and Korea Refract
The main advantage of trading using opposite Hwangkum Steel and Korea Refract positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwangkum Steel position performs unexpectedly, Korea Refract 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 Korea Refract will offset losses from the drop in Korea Refract's long position.| Hwangkum Steel vs. Samsung Electronics Co | Hwangkum Steel vs. Samsung Electronics Co | Hwangkum Steel vs. SK Hynix | Hwangkum Steel vs. POSCO Holdings |
| Korea Refract vs. Automobile Pc | Korea Refract vs. Kisan Telecom Co | Korea Refract vs. Hwangkum Steel Technology | Korea Refract vs. HB Technology TD |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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