Correlation Between ICD and HuMC
Can any of the company-specific risk be diversified away by investing in both ICD and HuMC 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 ICD and HuMC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICD Co and HuMC Co, you can compare the effects of market volatilities on ICD and HuMC 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 ICD with a short position of HuMC. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICD and HuMC.
Diversification Opportunities for ICD and HuMC
Pay attention - limited upside
The 3 months correlation between ICD and HuMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICD Co and HuMC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HuMC and ICD 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 ICD Co are associated (or correlated) with HuMC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HuMC has no effect on the direction of ICD i.e., ICD and HuMC go up and down completely randomly.
Pair Corralation between ICD and HuMC
If you would invest 0.00 in HuMC Co on January 15, 2025 and sell it today you would earn a total of 0.00 from holding HuMC Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.21% |
| Values | Daily Returns |
ICD Co vs. HuMC Co
Performance |
| Timeline |
| ICD Co |
| HuMC |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ICD and HuMC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICD and HuMC
The main advantage of trading using opposite ICD and HuMC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICD position performs unexpectedly, HuMC 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 HuMC will offset losses from the drop in HuMC's long position.| ICD vs. SFA Engineering | ICD vs. APS Holdings | ICD vs. Soulbrain Holdings Co | ICD vs. JUSUNG ENGINEERING Co |
| HuMC vs. Samsung Life Insurance | HuMC vs. Industrial Bank | HuMC vs. Korean Reinsurance Co | HuMC vs. Hana Financial |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |