Correlation Between HLB Pharmaceutical and Sam A
Can any of the company-specific risk be diversified away by investing in both HLB Pharmaceutical and Sam A 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 HLB Pharmaceutical and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HLB Pharmaceutical Co and Sam A Pharm Co, you can compare the effects of market volatilities on HLB Pharmaceutical and Sam A 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 HLB Pharmaceutical with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of HLB Pharmaceutical and Sam A.
Diversification Opportunities for HLB Pharmaceutical and Sam A
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HLB and Sam is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HLB Pharmaceutical Co and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm and HLB Pharmaceutical 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 HLB Pharmaceutical Co are associated (or correlated) with Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of HLB Pharmaceutical i.e., HLB Pharmaceutical and Sam A go up and down completely randomly.
Pair Corralation between HLB Pharmaceutical and Sam A
Assuming the 90 days trading horizon HLB Pharmaceutical Co is expected to generate 2.11 times more return on investment than Sam A. However, HLB Pharmaceutical is 2.11 times more volatile than Sam A Pharm Co. It trades about 0.14 of its potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.27 per unit of risk. If you would invest 2,465,000 in HLB Pharmaceutical Co on November 4, 2024 and sell it today you would earn a total of 135,000 from holding HLB Pharmaceutical Co or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HLB Pharmaceutical Co vs. Sam A Pharm Co
Performance |
| Timeline |
| HLB Pharmaceutical |
| Sam A Pharm |
HLB Pharmaceutical and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HLB Pharmaceutical and Sam A
The main advantage of trading using opposite HLB Pharmaceutical and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HLB Pharmaceutical position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.| HLB Pharmaceutical vs. Samyang Foods Co | HLB Pharmaceutical vs. Formetal Co | HLB Pharmaceutical vs. LG Household Healthcare | HLB Pharmaceutical vs. Dongil Metal Co |
| Sam A vs. Ecoplastic | Sam A vs. Hanmi Semiconductor Co | Sam A vs. INNOX Advanced Materials | Sam A vs. Union Materials Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |