Correlation Between Hankukpackage and ECSTELECOM
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and ECSTELECOM 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 ECSTELECOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and ECSTELECOM Co, you can compare the effects of market volatilities on Hankukpackage and ECSTELECOM 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 ECSTELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and ECSTELECOM.
Diversification Opportunities for Hankukpackage and ECSTELECOM
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hankukpackage and ECSTELECOM is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and ECSTELECOM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECSTELECOM 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 ECSTELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECSTELECOM has no effect on the direction of Hankukpackage i.e., Hankukpackage and ECSTELECOM go up and down completely randomly.
Pair Corralation between Hankukpackage and ECSTELECOM
Assuming the 90 days trading horizon Hankukpackage is expected to generate 3.75 times less return on investment than ECSTELECOM. In addition to that, Hankukpackage is 2.58 times more volatile than ECSTELECOM Co. It trades about 0.01 of its total potential returns per unit of risk. ECSTELECOM Co is currently generating about 0.12 per unit of volatility. If you would invest 286,000 in ECSTELECOM Co on September 13, 2024 and sell it today you would earn a total of 9,000 from holding ECSTELECOM Co or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankukpackage Co vs. ECSTELECOM Co
Performance |
| Timeline |
| Hankukpackage |
| ECSTELECOM |
Hankukpackage and ECSTELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and ECSTELECOM
The main advantage of trading using opposite Hankukpackage and ECSTELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, ECSTELECOM 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 ECSTELECOM will offset losses from the drop in ECSTELECOM's long position.| Hankukpackage vs. Solution Advanced Technology | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Sam Chun Dang |
| ECSTELECOM vs. Solution Advanced Technology | ECSTELECOM vs. Busan Industrial Co | ECSTELECOM vs. Busan Ind | ECSTELECOM vs. Sam Chun Dang |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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