Correlation Between Hwangkum Steel and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Hwangkum Steel and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Hwangkum Steel and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwangkum Steel and Duksan Hi.
Diversification Opportunities for Hwangkum Steel and Duksan Hi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hwangkum and Duksan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hwangkum Steel Technology and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Hwangkum Steel i.e., Hwangkum Steel and Duksan Hi go up and down completely randomly.
Pair Corralation between Hwangkum Steel and Duksan Hi
Assuming the 90 days trading horizon Hwangkum Steel Technology is expected to generate 0.49 times more return on investment than Duksan Hi. However, Hwangkum Steel Technology is 2.02 times less risky than Duksan Hi. It trades about -0.05 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.02 per unit of risk. If you would invest 503,000 in Hwangkum Steel Technology on September 26, 2024 and sell it today you would lose (11,000) from holding Hwangkum Steel Technology or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwangkum Steel Technology vs. Duksan Hi Metal
Performance |
| Timeline |
| Hwangkum Steel Technology |
| Duksan Hi Metal |
Hwangkum Steel and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwangkum Steel and Duksan Hi
The main advantage of trading using opposite Hwangkum Steel and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwangkum Steel position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Hwangkum Steel vs. Stic Investments | Hwangkum Steel vs. Polaris Office Corp | Hwangkum Steel vs. SBI Investment KOREA | Hwangkum Steel vs. Dongil Metal Co |
| Duksan Hi vs. Dongsin Engineering Construction | Duksan Hi vs. Doosan Fuel Cell | Duksan Hi vs. Daishin Balance 1 | Duksan Hi vs. Total Soft Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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