Correlation Between Hankukpackage and Jeju Air
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Jeju Air 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 Jeju Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Jeju Air Co, you can compare the effects of market volatilities on Hankukpackage and Jeju Air 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 Jeju Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Jeju Air.
Diversification Opportunities for Hankukpackage and Jeju Air
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hankukpackage and Jeju is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Jeju Air Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Air 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 Jeju Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Air has no effect on the direction of Hankukpackage i.e., Hankukpackage and Jeju Air go up and down completely randomly.
Pair Corralation between Hankukpackage and Jeju Air
Assuming the 90 days trading horizon Hankukpackage Co is expected to generate 0.93 times more return on investment than Jeju Air. However, Hankukpackage Co is 1.08 times less risky than Jeju Air. It trades about 0.0 of its potential returns per unit of risk. Jeju Air Co is currently generating about -0.05 per unit of risk. If you would invest 196,500 in Hankukpackage Co on September 14, 2024 and sell it today you would lose (4,500) from holding Hankukpackage Co or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Hankukpackage Co vs. Jeju Air Co
Performance |
| Timeline |
| Hankukpackage |
| Jeju Air |
Hankukpackage and Jeju Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Jeju Air
The main advantage of trading using opposite Hankukpackage and Jeju Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Jeju Air 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 Jeju Air will offset losses from the drop in Jeju Air's long position.| Hankukpackage vs. Solution Advanced Technology | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Sam Chun Dang |
| Jeju Air vs. Korea New Network | Jeju Air vs. Solution Advanced Technology | Jeju Air vs. Busan Industrial Co | Jeju Air vs. Busan Ind |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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