Correlation Between Hankukpackage and Pum Tech
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Pum Tech 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 Pum Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Pum Tech Korea Co, you can compare the effects of market volatilities on Hankukpackage and Pum Tech 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 Pum Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Pum Tech.
Diversification Opportunities for Hankukpackage and Pum Tech
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hankukpackage and Pum is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Pum Tech Korea Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pum Tech Korea 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 Pum Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pum Tech Korea has no effect on the direction of Hankukpackage i.e., Hankukpackage and Pum Tech go up and down completely randomly.
Pair Corralation between Hankukpackage and Pum Tech
Assuming the 90 days trading horizon Hankukpackage Co is expected to under-perform the Pum Tech. But the stock apears to be less risky and, when comparing its historical volatility, Hankukpackage Co is 1.83 times less risky than Pum Tech. The stock trades about -0.02 of its potential returns per unit of risk. The Pum Tech Korea Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,423,853 in Pum Tech Korea Co on October 16, 2024 and sell it today you would earn a total of 2,151,147 from holding Pum Tech Korea Co or generate 88.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankukpackage Co vs. Pum Tech Korea Co
Performance |
| Timeline |
| Hankukpackage |
| Pum Tech Korea |
Hankukpackage and Pum Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Pum Tech
The main advantage of trading using opposite Hankukpackage and Pum Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Pum Tech 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 Pum Tech will offset losses from the drop in Pum Tech's long position.| Hankukpackage vs. Samyang Foods Co | Hankukpackage vs. Samlip General Foods | Hankukpackage vs. Duksan Hi Metal | Hankukpackage vs. Shinsegae Food |
| Pum Tech vs. Hankukpackage Co | Pum Tech vs. Busan Industrial Co | Pum Tech vs. Busan Ind | Pum Tech vs. UNISEM Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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