Correlation Between Orbitech and Hanjoo Light
Can any of the company-specific risk be diversified away by investing in both Orbitech and Hanjoo Light 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 Orbitech and Hanjoo Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orbitech Co and Hanjoo Light Metal, you can compare the effects of market volatilities on Orbitech and Hanjoo Light 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 Orbitech with a short position of Hanjoo Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orbitech and Hanjoo Light.
Diversification Opportunities for Orbitech and Hanjoo Light
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Orbitech and Hanjoo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Orbitech Co and Hanjoo Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjoo Light Metal and Orbitech 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 Orbitech Co are associated (or correlated) with Hanjoo Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjoo Light Metal has no effect on the direction of Orbitech i.e., Orbitech and Hanjoo Light go up and down completely randomly.
Pair Corralation between Orbitech and Hanjoo Light
Assuming the 90 days trading horizon Orbitech Co is expected to generate 1.31 times more return on investment than Hanjoo Light. However, Orbitech is 1.31 times more volatile than Hanjoo Light Metal. It trades about -0.07 of its potential returns per unit of risk. Hanjoo Light Metal is currently generating about -0.37 per unit of risk. If you would invest 248,500 in Orbitech Co on August 24, 2024 and sell it today you would lose (12,500) from holding Orbitech Co or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orbitech Co vs. Hanjoo Light Metal
Performance |
| Timeline |
| Orbitech |
| Hanjoo Light Metal |
Orbitech and Hanjoo Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orbitech and Hanjoo Light
The main advantage of trading using opposite Orbitech and Hanjoo Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orbitech position performs unexpectedly, Hanjoo Light 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 Hanjoo Light will offset losses from the drop in Hanjoo Light's long position.| Orbitech vs. Hyosung Advanced Materials | Orbitech vs. Daiyang Metal Co | Orbitech vs. Songwon Industrial Co | Orbitech vs. Daejoo Electronic Materials |
| Hanjoo Light vs. Samsung Electronics Co | Hanjoo Light vs. Samsung Electronics Co | Hanjoo Light vs. LG Energy Solution | Hanjoo Light vs. SK Hynix |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |