Correlation Between Hankukpackage and CU Tech
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and CU 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 CU 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 CU Tech Corp, you can compare the effects of market volatilities on Hankukpackage and CU 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 CU Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and CU Tech.
Diversification Opportunities for Hankukpackage and CU Tech
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hankukpackage and 376290 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and CU Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Tech Corp 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 CU Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Tech Corp has no effect on the direction of Hankukpackage i.e., Hankukpackage and CU Tech go up and down completely randomly.
Pair Corralation between Hankukpackage and CU Tech
Assuming the 90 days trading horizon Hankukpackage is expected to generate 1.18 times less return on investment than CU Tech. In addition to that, Hankukpackage is 1.34 times more volatile than CU Tech Corp. It trades about 0.11 of its total potential returns per unit of risk. CU Tech Corp is currently generating about 0.17 per unit of volatility. If you would invest 286,500 in CU Tech Corp on October 30, 2024 and sell it today you would earn a total of 8,500 from holding CU Tech Corp or generate 2.97% 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. CU Tech Corp
Performance |
| Timeline |
| Hankukpackage |
| CU Tech Corp |
Hankukpackage and CU Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and CU Tech
The main advantage of trading using opposite Hankukpackage and CU Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, CU 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 CU Tech will offset losses from the drop in CU Tech's long position.| Hankukpackage vs. SeAH Besteel Corp | Hankukpackage vs. Hyundai Engineering Plastics | Hankukpackage vs. Daehan Steel | Hankukpackage vs. Daejoo Electronic Materials |
| CU Tech vs. Sempio Foods Co | CU Tech vs. Ecoplastic | CU Tech vs. Hankukpackage Co | CU Tech vs. WONIK Materials CoLtd |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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