Correlation Between Haesung Industrial and Industrial Bank
Can any of the company-specific risk be diversified away by investing in both Haesung Industrial and Industrial Bank 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 Haesung Industrial and Industrial Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haesung Industrial Co and Industrial Bank, you can compare the effects of market volatilities on Haesung Industrial and Industrial Bank 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 Haesung Industrial with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haesung Industrial and Industrial Bank.
Diversification Opportunities for Haesung Industrial and Industrial Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haesung and Industrial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Haesung Industrial Co and Industrial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Haesung Industrial 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 Haesung Industrial Co are associated (or correlated) with Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Haesung Industrial i.e., Haesung Industrial and Industrial Bank go up and down completely randomly.
Pair Corralation between Haesung Industrial and Industrial Bank
If you would invest (100.00) in Industrial Bank on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Industrial Bank or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Haesung Industrial Co vs. Industrial Bank
Performance |
| Timeline |
| Haesung Industrial |
| Industrial Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Haesung Industrial and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haesung Industrial and Industrial Bank
The main advantage of trading using opposite Haesung Industrial and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haesung Industrial position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Haesung Industrial vs. Busan Industrial Co | Haesung Industrial vs. UNISEM Co | Haesung Industrial vs. RPBio Inc | Haesung Industrial vs. Finebesteel |
| Industrial Bank vs. Haesung Industrial Co | Industrial Bank vs. Formetal Co | Industrial Bank vs. Seoyon Topmetal Co | Industrial Bank vs. Visang Education |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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