Correlation Between Homecast CoLtd and Anam Electronics
Can any of the company-specific risk be diversified away by investing in both Homecast CoLtd and Anam Electronics 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 Homecast CoLtd and Anam Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Homecast CoLtd and Anam Electronics Co, you can compare the effects of market volatilities on Homecast CoLtd and Anam Electronics 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 Homecast CoLtd with a short position of Anam Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Homecast CoLtd and Anam Electronics.
Diversification Opportunities for Homecast CoLtd and Anam Electronics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Homecast and Anam is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Homecast CoLtd and Anam Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anam Electronics and Homecast 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 Homecast CoLtd are associated (or correlated) with Anam Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anam Electronics has no effect on the direction of Homecast CoLtd i.e., Homecast CoLtd and Anam Electronics go up and down completely randomly.
Pair Corralation between Homecast CoLtd and Anam Electronics
Assuming the 90 days trading horizon Homecast CoLtd is expected to generate 1.88 times more return on investment than Anam Electronics. However, Homecast CoLtd is 1.88 times more volatile than Anam Electronics Co. It trades about -0.01 of its potential returns per unit of risk. Anam Electronics Co is currently generating about -0.02 per unit of risk. If you would invest 440,000 in Homecast CoLtd on September 12, 2024 and sell it today you would lose (206,000) from holding Homecast CoLtd or give up 46.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Homecast CoLtd vs. Anam Electronics Co
Performance |
| Timeline |
| Homecast CoLtd |
| Anam Electronics |
Homecast CoLtd and Anam Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Homecast CoLtd and Anam Electronics
The main advantage of trading using opposite Homecast CoLtd and Anam Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Homecast CoLtd position performs unexpectedly, Anam Electronics 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 Anam Electronics will offset losses from the drop in Anam Electronics' long position.| Homecast CoLtd vs. Cube Entertainment | Homecast CoLtd vs. Dreamus Company | Homecast CoLtd vs. LG Energy Solution | Homecast CoLtd vs. Dongwon System |
| Anam Electronics vs. Samsung Electronics Co | Anam Electronics vs. Samsung Electronics Co | Anam Electronics vs. SK Hynix | Anam Electronics vs. POSCO Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance |