Correlation Between Hankukpackage and Finebesteel
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Finebesteel 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 Finebesteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Finebesteel, you can compare the effects of market volatilities on Hankukpackage and Finebesteel 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 Finebesteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Finebesteel.
Diversification Opportunities for Hankukpackage and Finebesteel
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hankukpackage and Finebesteel is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Finebesteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finebesteel 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 Finebesteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finebesteel has no effect on the direction of Hankukpackage i.e., Hankukpackage and Finebesteel go up and down completely randomly.
Pair Corralation between Hankukpackage and Finebesteel
Assuming the 90 days trading horizon Hankukpackage Co is expected to under-perform the Finebesteel. But the stock apears to be less risky and, when comparing its historical volatility, Hankukpackage Co is 1.02 times less risky than Finebesteel. The stock trades about -0.03 of its potential returns per unit of risk. The Finebesteel is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 104,700 in Finebesteel on October 30, 2024 and sell it today you would earn a total of 4,700 from holding Finebesteel or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankukpackage Co vs. Finebesteel
Performance |
| Timeline |
| Hankukpackage |
| Finebesteel |
Hankukpackage and Finebesteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Finebesteel
The main advantage of trading using opposite Hankukpackage and Finebesteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Finebesteel 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 Finebesteel will offset losses from the drop in Finebesteel's long position.| Hankukpackage vs. SeAH Besteel Corp | Hankukpackage vs. Hyundai Engineering Plastics | Hankukpackage vs. Daehan Steel | Hankukpackage vs. Daejoo Electronic Materials |
| Finebesteel vs. Ssangyong Materials Corp | Finebesteel vs. TOPMATERIAL LTD | Finebesteel vs. LS Materials | Finebesteel vs. Koryo Credit Information |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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