Correlation Between Hankukpackage and Sangsin Energy
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Sangsin Energy 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 Sangsin Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Sangsin Energy Display, you can compare the effects of market volatilities on Hankukpackage and Sangsin Energy 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 Sangsin Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Sangsin Energy.
Diversification Opportunities for Hankukpackage and Sangsin Energy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hankukpackage and Sangsin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Sangsin Energy Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsin Energy Display 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 Sangsin Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsin Energy Display has no effect on the direction of Hankukpackage i.e., Hankukpackage and Sangsin Energy go up and down completely randomly.
Pair Corralation between Hankukpackage and Sangsin Energy
Assuming the 90 days trading horizon Hankukpackage Co is expected to under-perform the Sangsin Energy. But the stock apears to be less risky and, when comparing its historical volatility, Hankukpackage Co is 1.28 times less risky than Sangsin Energy. The stock trades about -0.05 of its potential returns per unit of risk. The Sangsin Energy Display is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 750,792 in Sangsin Energy Display on October 14, 2024 and sell it today you would earn a total of 37,208 from holding Sangsin Energy Display or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankukpackage Co vs. Sangsin Energy Display
Performance |
| Timeline |
| Hankukpackage |
| Sangsin Energy Display |
Hankukpackage and Sangsin Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Sangsin Energy
The main advantage of trading using opposite Hankukpackage and Sangsin Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Sangsin Energy 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 Sangsin Energy will offset losses from the drop in Sangsin Energy's long position.| Hankukpackage vs. Seoul Electronics Telecom | Hankukpackage vs. Dongil Metal Co | Hankukpackage vs. Tuksu Engineering ConstructionLtd | Hankukpackage vs. Seoam Machinery Industry |
| Sangsin Energy vs. Amogreentech Co | Sangsin Energy vs. SEOWONINTECHCoLtd | Sangsin Energy vs. FNSTech Co | Sangsin Energy vs. Daishin Information Communications |
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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