Correlation Between UNISEM and Hankook Furniture
Can any of the company-specific risk be diversified away by investing in both UNISEM and Hankook Furniture 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 UNISEM and Hankook Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and Hankook Furniture Co, you can compare the effects of market volatilities on UNISEM and Hankook Furniture 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 UNISEM with a short position of Hankook Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and Hankook Furniture.
Diversification Opportunities for UNISEM and Hankook Furniture
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNISEM and Hankook is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and Hankook Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankook Furniture and UNISEM 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 UNISEM Co are associated (or correlated) with Hankook Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankook Furniture has no effect on the direction of UNISEM i.e., UNISEM and Hankook Furniture go up and down completely randomly.
Pair Corralation between UNISEM and Hankook Furniture
Assuming the 90 days trading horizon UNISEM Co is expected to under-perform the Hankook Furniture. In addition to that, UNISEM is 3.12 times more volatile than Hankook Furniture Co. It trades about -0.09 of its total potential returns per unit of risk. Hankook Furniture Co is currently generating about 0.0 per unit of volatility. If you would invest 409,620 in Hankook Furniture Co on August 25, 2024 and sell it today you would lose (3,120) from holding Hankook Furniture Co or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
UNISEM Co vs. Hankook Furniture Co
Performance |
| Timeline |
| UNISEM |
| Hankook Furniture |
UNISEM and Hankook Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and Hankook Furniture
The main advantage of trading using opposite UNISEM and Hankook Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM position performs unexpectedly, Hankook Furniture 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 Hankook Furniture will offset losses from the drop in Hankook Furniture's long position.| UNISEM vs. Kukdong Oil Chemicals | UNISEM vs. Hankuk Steel Wire | UNISEM vs. Fine Besteel Co | UNISEM vs. BGF Retail Co |
| Hankook Furniture vs. Busan Industrial Co | Hankook Furniture vs. Busan Ind | Hankook Furniture vs. Mirae Asset Daewoo | Hankook Furniture vs. UNISEM 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |