Correlation Between BIT Computer and Handok Clean
Can any of the company-specific risk be diversified away by investing in both BIT Computer and Handok Clean 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 Handok Clean 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 Handok Clean Tech, you can compare the effects of market volatilities on BIT Computer and Handok Clean 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 Handok Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Handok Clean.
Diversification Opportunities for BIT Computer and Handok Clean
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BIT and Handok is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Handok Clean Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handok Clean Tech 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 Handok Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handok Clean Tech has no effect on the direction of BIT Computer i.e., BIT Computer and Handok Clean go up and down completely randomly.
Pair Corralation between BIT Computer and Handok Clean
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 1.79 times more return on investment than Handok Clean. However, BIT Computer is 1.79 times more volatile than Handok Clean Tech. It trades about 0.0 of its potential returns per unit of risk. Handok Clean Tech is currently generating about -0.02 per unit of risk. If you would invest 607,442 in BIT Computer Co on September 3, 2024 and sell it today you would lose (106,442) from holding BIT Computer Co or give up 17.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Handok Clean Tech
Performance |
| Timeline |
| BIT Computer |
| Handok Clean Tech |
BIT Computer and Handok Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Handok Clean
The main advantage of trading using opposite BIT Computer and Handok Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer position performs unexpectedly, Handok Clean 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 Handok Clean will offset losses from the drop in Handok Clean's long position.| BIT Computer vs. CKH Food Health | BIT Computer vs. Polaris Office Corp | BIT Computer vs. Cuckoo Homesys Co | BIT Computer vs. Samlip General Foods |
| Handok Clean vs. Busan Industrial Co | Handok Clean vs. UNISEM Co | Handok Clean vs. RPBio Inc | Handok Clean vs. Finebesteel |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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