Correlation Between HLB Pharmaceutical and Kolon Life
Can any of the company-specific risk be diversified away by investing in both HLB Pharmaceutical and Kolon Life 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 Kolon Life 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 Kolon Life Science, you can compare the effects of market volatilities on HLB Pharmaceutical and Kolon Life 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 Kolon Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of HLB Pharmaceutical and Kolon Life.
Diversification Opportunities for HLB Pharmaceutical and Kolon Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HLB and Kolon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HLB Pharmaceutical Co and Kolon Life Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolon Life Science 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 Kolon Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolon Life Science has no effect on the direction of HLB Pharmaceutical i.e., HLB Pharmaceutical and Kolon Life go up and down completely randomly.
Pair Corralation between HLB Pharmaceutical and Kolon Life
If you would invest 1,948,000 in HLB Pharmaceutical Co on November 2, 2024 and sell it today you would earn a total of 622,000 from holding HLB Pharmaceutical Co or generate 31.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HLB Pharmaceutical Co vs. Kolon Life Science
Performance |
| Timeline |
| HLB Pharmaceutical |
| Kolon Life Science |
HLB Pharmaceutical and Kolon Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HLB Pharmaceutical and Kolon Life
The main advantage of trading using opposite HLB Pharmaceutical and Kolon Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HLB Pharmaceutical position performs unexpectedly, Kolon Life 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 Kolon Life will offset losses from the drop in Kolon Life's long position.| HLB Pharmaceutical vs. E Investment Development | HLB Pharmaceutical vs. Woorim Machinery Co | HLB Pharmaceutical vs. Seohee Construction Co | HLB Pharmaceutical vs. DB Financial Investment |
| Kolon Life vs. Dongwoo Farm To | Kolon Life vs. SK Telecom Co | Kolon Life vs. Keyang Electric Machinery | Kolon Life vs. Tuksu Engineering ConstructionLtd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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