Correlation Between Korea Electronic and HYBE
Can any of the company-specific risk be diversified away by investing in both Korea Electronic and HYBE 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 Korea Electronic and HYBE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Electronic Certification and HYBE Co, you can compare the effects of market volatilities on Korea Electronic and HYBE 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 Korea Electronic with a short position of HYBE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Electronic and HYBE.
Diversification Opportunities for Korea Electronic and HYBE
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Korea and HYBE is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Korea Electronic Certification and HYBE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBE and Korea Electronic 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 Korea Electronic Certification are associated (or correlated) with HYBE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBE has no effect on the direction of Korea Electronic i.e., Korea Electronic and HYBE go up and down completely randomly.
Pair Corralation between Korea Electronic and HYBE
Assuming the 90 days trading horizon Korea Electronic is expected to generate 1.09 times less return on investment than HYBE. But when comparing it to its historical volatility, Korea Electronic Certification is 1.24 times less risky than HYBE. It trades about 0.25 of its potential returns per unit of risk. HYBE Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 19,990,000 in HYBE Co on October 24, 2024 and sell it today you would earn a total of 1,810,000 from holding HYBE Co or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Korea Electronic Certification vs. HYBE Co
Performance |
| Timeline |
| Korea Electronic Cer |
| HYBE |
Korea Electronic and HYBE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Electronic and HYBE
The main advantage of trading using opposite Korea Electronic and HYBE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Electronic position performs unexpectedly, HYBE 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 HYBE will offset losses from the drop in HYBE's long position.| Korea Electronic vs. Dongnam Chemical Co | Korea Electronic vs. Youngbo Chemical Co | Korea Electronic vs. Mgame Corp | Korea Electronic vs. Echomarketing CoLtd |
| HYBE vs. NH Investment Securities | HYBE vs. Coloray International Investment | HYBE vs. Choil Aluminum | HYBE vs. Daejung Chemicals Metals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |