Correlation Between Hankukpackage and DB HiTek
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and DB HiTek 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 Hankukpackage and DB HiTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and DB HiTek Co, you can compare the effects of market volatilities on Hankukpackage and DB HiTek 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 Hankukpackage with a short position of DB HiTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and DB HiTek.
Diversification Opportunities for Hankukpackage and DB HiTek
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hankukpackage and 000990 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and DB HiTek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB HiTek and Hankukpackage 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 Hankukpackage Co are associated (or correlated) with DB HiTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB HiTek has no effect on the direction of Hankukpackage i.e., Hankukpackage and DB HiTek go up and down completely randomly.
Pair Corralation between Hankukpackage and DB HiTek
Assuming the 90 days trading horizon Hankukpackage Co is expected to generate 0.52 times more return on investment than DB HiTek. However, Hankukpackage Co is 1.93 times less risky than DB HiTek. It trades about -0.03 of its potential returns per unit of risk. DB HiTek Co is currently generating about -0.06 per unit of risk. If you would invest 207,799 in Hankukpackage Co on September 12, 2024 and sell it today you would lose (27,199) from holding Hankukpackage Co or give up 13.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankukpackage Co vs. DB HiTek Co
Performance |
| Timeline |
| Hankukpackage |
| DB HiTek |
Hankukpackage and DB HiTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and DB HiTek
The main advantage of trading using opposite Hankukpackage and DB HiTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, DB HiTek 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 DB HiTek will offset losses from the drop in DB HiTek's long position.| Hankukpackage vs. Solution Advanced Technology | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Sam Chun Dang |
| DB HiTek vs. CJ Seafood Corp | DB HiTek vs. Hankukpackage Co | DB HiTek vs. CJ Seafood Corp | DB HiTek vs. Shinsegae Food |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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