Correlation Between BIT Computer and Hwangkum Steel
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Hwangkum Steel 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 BIT Computer and Hwangkum Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Hwangkum Steel Technology, you can compare the effects of market volatilities on BIT Computer and Hwangkum Steel 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 BIT Computer with a short position of Hwangkum Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Hwangkum Steel.
Diversification Opportunities for BIT Computer and Hwangkum Steel
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BIT and Hwangkum is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Hwangkum Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwangkum Steel Technology and BIT Computer 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 BIT Computer Co are associated (or correlated) with Hwangkum Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwangkum Steel Technology has no effect on the direction of BIT Computer i.e., BIT Computer and Hwangkum Steel go up and down completely randomly.
Pair Corralation between BIT Computer and Hwangkum Steel
Assuming the 90 days trading horizon BIT Computer Co is expected to under-perform the Hwangkum Steel. In addition to that, BIT Computer is 1.74 times more volatile than Hwangkum Steel Technology. It trades about 0.0 of its total potential returns per unit of risk. Hwangkum Steel Technology is currently generating about 0.44 per unit of volatility. If you would invest 472,592 in Hwangkum Steel Technology on October 23, 2024 and sell it today you would earn a total of 23,908 from holding Hwangkum Steel Technology or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Hwangkum Steel Technology
Performance |
| Timeline |
| BIT Computer |
| Hwangkum Steel Technology |
BIT Computer and Hwangkum Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Hwangkum Steel
The main advantage of trading using opposite BIT Computer and Hwangkum Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Hwangkum Steel 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 Hwangkum Steel will offset losses from the drop in Hwangkum Steel's long position.| BIT Computer vs. Leaders Technology Investment | BIT Computer vs. Han Kook Steel | BIT Computer vs. Nature and Environment | BIT Computer vs. Fine Besteel Co |
| Hwangkum Steel vs. Shinil Electronics Co | Hwangkum Steel vs. LAKE MATERIALS LTD | Hwangkum Steel vs. Daejoo Electronic Materials | Hwangkum Steel vs. SungMoon Electronics 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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