Correlation Between Hankukpackage and ED
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and ED 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 ED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and ED Co, you can compare the effects of market volatilities on Hankukpackage and ED 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 ED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and ED.
Diversification Opportunities for Hankukpackage and ED
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hankukpackage and ED is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and ED Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ED Co 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 ED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ED Co has no effect on the direction of Hankukpackage i.e., Hankukpackage and ED go up and down completely randomly.
Pair Corralation between Hankukpackage and ED
Assuming the 90 days trading horizon Hankukpackage Co is expected to generate 0.28 times more return on investment than ED. However, Hankukpackage Co is 3.6 times less risky than ED. It trades about -0.22 of its potential returns per unit of risk. ED Co is currently generating about -0.32 per unit of risk. If you would invest 199,200 in Hankukpackage Co on August 31, 2024 and sell it today you would lose (12,500) from holding Hankukpackage Co or give up 6.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hankukpackage Co vs. ED Co
Performance |
| Timeline |
| Hankukpackage |
| ED Co |
Hankukpackage and ED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and ED
The main advantage of trading using opposite Hankukpackage and ED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, ED 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 ED will offset losses from the drop in ED's long position.| Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Mirae Asset Daewoo | Hankukpackage vs. Finebesteel |
| ED vs. Hankukpackage Co | ED vs. Sempio Foods Co | ED vs. Nice Information Telecommunication | ED vs. LG Chemicals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |