Correlation Between Insung Information and Husteel
Can any of the company-specific risk be diversified away by investing in both Insung Information and Husteel 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 Insung Information and Husteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insung Information Co and Husteel, you can compare the effects of market volatilities on Insung Information and Husteel 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 Insung Information with a short position of Husteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insung Information and Husteel.
Diversification Opportunities for Insung Information and Husteel
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Insung and Husteel is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Insung Information Co and Husteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Husteel and Insung Information 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 Insung Information Co are associated (or correlated) with Husteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Husteel has no effect on the direction of Insung Information i.e., Insung Information and Husteel go up and down completely randomly.
Pair Corralation between Insung Information and Husteel
Assuming the 90 days trading horizon Insung Information Co is expected to under-perform the Husteel. In addition to that, Insung Information is 1.24 times more volatile than Husteel. It trades about -0.14 of its total potential returns per unit of risk. Husteel is currently generating about -0.11 per unit of volatility. If you would invest 408,500 in Husteel on September 5, 2024 and sell it today you would lose (19,500) from holding Husteel or give up 4.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insung Information Co vs. Husteel
Performance |
| Timeline |
| Insung Information |
| Husteel |
Insung Information and Husteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insung Information and Husteel
The main advantage of trading using opposite Insung Information and Husteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insung Information position performs unexpectedly, Husteel 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 Husteel will offset losses from the drop in Husteel's long position.| Insung Information vs. Dongsin Engineering Construction | Insung Information vs. Doosan Fuel Cell | Insung Information vs. Daishin Balance 1 | Insung Information vs. Total Soft Bank |
| Husteel vs. Narae Nanotech Corp | Husteel vs. Lotte Chilsung Beverage | Husteel vs. Insung Information Co | Husteel vs. Eagle Veterinary Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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