Correlation Between INtRON Biotechnology and Hanwha Solutions
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Hanwha Solutions 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 INtRON Biotechnology and Hanwha Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Hanwha Solutions, you can compare the effects of market volatilities on INtRON Biotechnology and Hanwha Solutions 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 INtRON Biotechnology with a short position of Hanwha Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Hanwha Solutions.
Diversification Opportunities for INtRON Biotechnology and Hanwha Solutions
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INtRON and Hanwha is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Hanwha Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Solutions and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with Hanwha Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Solutions has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Hanwha Solutions go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Hanwha Solutions
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 0.77 times more return on investment than Hanwha Solutions. However, iNtRON Biotechnology is 1.29 times less risky than Hanwha Solutions. It trades about 0.0 of its potential returns per unit of risk. Hanwha Solutions is currently generating about -0.04 per unit of risk. If you would invest 580,017 in iNtRON Biotechnology on November 2, 2024 and sell it today you would lose (24,017) from holding iNtRON Biotechnology or give up 4.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Hanwha Solutions
Performance |
| Timeline |
| iNtRON Biotechnology |
| Hanwha Solutions |
INtRON Biotechnology and Hanwha Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Hanwha Solutions
The main advantage of trading using opposite INtRON Biotechnology and Hanwha Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Hanwha Solutions 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 Hanwha Solutions will offset losses from the drop in Hanwha Solutions' long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| Hanwha Solutions vs. Hyundai Engineering Plastics | Hanwha Solutions vs. Shinhan Inverse Silver | Hanwha Solutions vs. PI Advanced Materials | Hanwha Solutions vs. TJ media Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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