Correlation Between Genie Music and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Genie Music and Hankukpackage 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 Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genie Music and Hankukpackage Co, you can compare the effects of market volatilities on Genie Music and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genie Music and Hankukpackage.
Diversification Opportunities for Genie Music and Hankukpackage
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Genie and Hankukpackage is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Genie Music and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Genie Music i.e., Genie Music and Hankukpackage go up and down completely randomly.
Pair Corralation between Genie Music and Hankukpackage
Assuming the 90 days trading horizon Genie Music is expected to generate 1.09 times less return on investment than Hankukpackage. In addition to that, Genie Music is 1.25 times more volatile than Hankukpackage Co. It trades about 0.01 of its total potential returns per unit of risk. Hankukpackage Co is currently generating about 0.02 per unit of volatility. If you would invest 191,200 in Hankukpackage Co on September 14, 2024 and sell it today you would earn a total of 800.00 from holding Hankukpackage Co or generate 0.42% 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. Hankukpackage Co
Performance |
| Timeline |
| Genie Music |
| Hankukpackage |
Genie Music and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genie Music and Hankukpackage
The main advantage of trading using opposite Genie Music and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genie Music position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Genie Music vs. WooDeumGee Farm Co, | Genie Music vs. Dongwoo Farm To | Genie Music vs. SungMoon Electronics Co | Genie Music vs. Cuckoo Electronics Co |
| Hankukpackage vs. Solution Advanced Technology | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Sam Chun Dang |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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