Correlation Between CHOROKBAEM PANY and Hankook Furniture
Can any of the company-specific risk be diversified away by investing in both CHOROKBAEM PANY and Hankook Furniture 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 CHOROKBAEM PANY and Hankook Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHOROKBAEM PANY Co and Hankook Furniture Co, you can compare the effects of market volatilities on CHOROKBAEM PANY and Hankook Furniture 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 CHOROKBAEM PANY with a short position of Hankook Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHOROKBAEM PANY and Hankook Furniture.
Diversification Opportunities for CHOROKBAEM PANY and Hankook Furniture
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHOROKBAEM and Hankook is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding CHOROKBAEM PANY Co and Hankook Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankook Furniture and CHOROKBAEM PANY 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 CHOROKBAEM PANY Co are associated (or correlated) with Hankook Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankook Furniture has no effect on the direction of CHOROKBAEM PANY i.e., CHOROKBAEM PANY and Hankook Furniture go up and down completely randomly.
Pair Corralation between CHOROKBAEM PANY and Hankook Furniture
Assuming the 90 days trading horizon CHOROKBAEM PANY Co is expected to under-perform the Hankook Furniture. In addition to that, CHOROKBAEM PANY is 1.16 times more volatile than Hankook Furniture Co. It trades about -0.23 of its total potential returns per unit of risk. Hankook Furniture Co is currently generating about 0.12 per unit of volatility. If you would invest 358,270 in Hankook Furniture Co on October 14, 2024 and sell it today you would earn a total of 42,230 from holding Hankook Furniture Co or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 87.3% |
| Values | Daily Returns |
CHOROKBAEM PANY Co vs. Hankook Furniture Co
Performance |
| Timeline |
| CHOROKBAEM PANY |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hankook Furniture |
CHOROKBAEM PANY and Hankook Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHOROKBAEM PANY and Hankook Furniture
The main advantage of trading using opposite CHOROKBAEM PANY and Hankook Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHOROKBAEM PANY position performs unexpectedly, Hankook Furniture 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 Hankook Furniture will offset losses from the drop in Hankook Furniture's long position.| CHOROKBAEM PANY vs. DONGKUK TED METAL | CHOROKBAEM PANY vs. Formetal Co | CHOROKBAEM PANY vs. Daiyang Metal Co | CHOROKBAEM PANY vs. MetaLabs Co |
| Hankook Furniture vs. AptaBio Therapeutics | Hankook Furniture vs. Cytogen | Hankook Furniture vs. Woori Technology Investment | Hankook Furniture vs. ABL Bio |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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