Correlation Between SCI Information and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both SCI Information and Hankukpackage 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 SCI Information and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCI Information Service and Hankukpackage Co, you can compare the effects of market volatilities on SCI Information and Hankukpackage 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 SCI Information with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCI Information and Hankukpackage.
Diversification Opportunities for SCI Information and Hankukpackage
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SCI and Hankukpackage is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding SCI Information Service and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and SCI 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 SCI Information Service are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of SCI Information i.e., SCI Information and Hankukpackage go up and down completely randomly.
Pair Corralation between SCI Information and Hankukpackage
Assuming the 90 days trading horizon SCI Information Service is expected to generate 0.98 times more return on investment than Hankukpackage. However, SCI Information Service is 1.02 times less risky than Hankukpackage. It trades about 0.21 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.05 per unit of risk. If you would invest 219,500 in SCI Information Service on October 14, 2024 and sell it today you would earn a total of 16,500 from holding SCI Information Service or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCI Information Service vs. Hankukpackage Co
Performance |
| Timeline |
| SCI Information Service |
| Hankukpackage |
SCI Information and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCI Information and Hankukpackage
The main advantage of trading using opposite SCI Information and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCI Information position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| SCI Information vs. Hyundai Engineering Plastics | SCI Information vs. Taegu Broadcasting | SCI Information vs. Kolon Plastics | SCI Information vs. Hana Materials |
| Hankukpackage vs. Seoul Electronics Telecom | Hankukpackage vs. Dongil Metal Co | Hankukpackage vs. Tuksu Engineering ConstructionLtd | Hankukpackage vs. Seoam Machinery Industry |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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