Correlation Between Hankukpackage and Hyunwoo Industrial
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Hyunwoo Industrial 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 Hyunwoo Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Hyunwoo Industrial Co, you can compare the effects of market volatilities on Hankukpackage and Hyunwoo Industrial 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 Hyunwoo Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Hyunwoo Industrial.
Diversification Opportunities for Hankukpackage and Hyunwoo Industrial
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hankukpackage and Hyunwoo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Hyunwoo Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyunwoo Industrial 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 Hyunwoo Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyunwoo Industrial has no effect on the direction of Hankukpackage i.e., Hankukpackage and Hyunwoo Industrial go up and down completely randomly.
Pair Corralation between Hankukpackage and Hyunwoo Industrial
Assuming the 90 days trading horizon Hankukpackage Co is expected to under-perform the Hyunwoo Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Hankukpackage Co is 3.32 times less risky than Hyunwoo Industrial. The stock trades about -0.59 of its potential returns per unit of risk. The Hyunwoo Industrial Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 261,500 in Hyunwoo Industrial Co on November 7, 2024 and sell it today you would earn a total of 1,000.00 from holding Hyunwoo Industrial Co or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Hankukpackage Co vs. Hyunwoo Industrial Co
Performance |
| Timeline |
| Hankukpackage |
| Hyunwoo Industrial |
Hankukpackage and Hyunwoo Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Hyunwoo Industrial
The main advantage of trading using opposite Hankukpackage and Hyunwoo Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Hyunwoo Industrial 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 Hyunwoo Industrial will offset losses from the drop in Hyunwoo Industrial's long position.| Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind |
| Hyunwoo Industrial vs. SK Hynix | Hyunwoo Industrial vs. LX Semicon Co | Hyunwoo Industrial vs. Tokai Carbon Korea | Hyunwoo Industrial vs. People Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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