Correlation Between Hwangkum Steel and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Hwangkum Steel and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Hwangkum Steel and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwangkum Steel and Hankukpackage.
Diversification Opportunities for Hwangkum Steel and Hankukpackage
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hwangkum and Hankukpackage is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hwangkum Steel Technology and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Hwangkum Steel i.e., Hwangkum Steel and Hankukpackage go up and down completely randomly.
Pair Corralation between Hwangkum Steel and Hankukpackage
Assuming the 90 days trading horizon Hwangkum Steel Technology is expected to under-perform the Hankukpackage. But the stock apears to be less risky and, when comparing its historical volatility, Hwangkum Steel Technology is 1.33 times less risky than Hankukpackage. The stock trades about -0.11 of its potential returns per unit of risk. The Hankukpackage Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 208,781 in Hankukpackage Co on September 14, 2024 and sell it today you would lose (16,781) from holding Hankukpackage Co or give up 8.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwangkum Steel Technology vs. Hankukpackage Co
Performance |
| Timeline |
| Hwangkum Steel Technology |
| Hankukpackage |
Hwangkum Steel and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwangkum Steel and Hankukpackage
The main advantage of trading using opposite Hwangkum Steel and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwangkum Steel position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage'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 |
| Hankukpackage vs. Solution Advanced Technology | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Sam Chun Dang |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |