Correlation Between KHVATEC CoLtd and Humax
Can any of the company-specific risk be diversified away by investing in both KHVATEC CoLtd and Humax 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 KHVATEC CoLtd and Humax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KHVATEC CoLtd and Humax Co, you can compare the effects of market volatilities on KHVATEC CoLtd and Humax 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 KHVATEC CoLtd with a short position of Humax. Check out your portfolio center. Please also check ongoing floating volatility patterns of KHVATEC CoLtd and Humax.
Diversification Opportunities for KHVATEC CoLtd and Humax
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KHVATEC and Humax is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding KHVATEC CoLtd and Humax Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humax and KHVATEC CoLtd 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 KHVATEC CoLtd are associated (or correlated) with Humax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humax has no effect on the direction of KHVATEC CoLtd i.e., KHVATEC CoLtd and Humax go up and down completely randomly.
Pair Corralation between KHVATEC CoLtd and Humax
Assuming the 90 days trading horizon KHVATEC CoLtd is expected to generate 0.99 times more return on investment than Humax. However, KHVATEC CoLtd is 1.02 times less risky than Humax. It trades about -0.08 of its potential returns per unit of risk. Humax Co is currently generating about -0.15 per unit of risk. If you would invest 1,485,074 in KHVATEC CoLtd on September 12, 2024 and sell it today you would lose (702,074) from holding KHVATEC CoLtd or give up 47.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KHVATEC CoLtd vs. Humax Co
Performance |
| Timeline |
| KHVATEC CoLtd |
| Humax |
KHVATEC CoLtd and Humax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KHVATEC CoLtd and Humax
The main advantage of trading using opposite KHVATEC CoLtd and Humax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KHVATEC CoLtd position performs unexpectedly, Humax 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 Humax will offset losses from the drop in Humax's long position.| KHVATEC CoLtd vs. Seoul Semiconductor Co | KHVATEC CoLtd vs. Interflex Co | KHVATEC CoLtd vs. Intops Co | KHVATEC CoLtd vs. Kmw Inc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |