Correlation Between Genie Music and Hanil Chemical
Can any of the company-specific risk be diversified away by investing in both Genie Music and Hanil Chemical 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 Genie Music and Hanil Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and Hanil Chemical Ind, you can compare the effects of market volatilities on Genie Music and Hanil Chemical 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 Genie Music with a short position of Hanil Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and Hanil Chemical.
Diversification Opportunities for Genie Music and Hanil Chemical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genie and Hanil is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and Hanil Chemical Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanil Chemical Ind and Genie Music 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 Genie Music are associated (or correlated) with Hanil Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanil Chemical Ind has no effect on the direction of Genie Music i.e., Genie Music and Hanil Chemical go up and down completely randomly.
Pair Corralation between Genie Music and Hanil Chemical
Assuming the 90 days trading horizon Genie Music is expected to generate 0.92 times more return on investment than Hanil Chemical. However, Genie Music is 1.09 times less risky than Hanil Chemical. It trades about 0.18 of its potential returns per unit of risk. Hanil Chemical Ind is currently generating about 0.14 per unit of risk. If you would invest 197,400 in Genie Music on October 11, 2024 and sell it today you would earn a total of 16,600 from holding Genie Music or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genie Music vs. Hanil Chemical Ind
Performance |
| Timeline |
| Genie Music |
| Hanil Chemical Ind |
Genie Music and Hanil Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Music and Hanil Chemical
The main advantage of trading using opposite Genie Music and Hanil Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, Hanil Chemical 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 Hanil Chemical will offset losses from the drop in Hanil Chemical's long position.| Genie Music vs. Xavis Co | Genie Music vs. Hurum Co | Genie Music vs. Daishin Balance No8 | Genie Music vs. Korea Real Estate |
| Hanil Chemical vs. Genie Music | Hanil Chemical vs. GS Retail Co | Hanil Chemical vs. Duksan Hi Metal | Hanil Chemical vs. Dongbang Transport Logistics |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |