Correlation Between ECSTELECOM and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both ECSTELECOM and Hankukpackage 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 ECSTELECOM and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECSTELECOM Co and Hankukpackage Co, you can compare the effects of market volatilities on ECSTELECOM and Hankukpackage 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 ECSTELECOM with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECSTELECOM and Hankukpackage.
Diversification Opportunities for ECSTELECOM and Hankukpackage
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ECSTELECOM and Hankukpackage is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding ECSTELECOM Co and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and ECSTELECOM 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 ECSTELECOM Co are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of ECSTELECOM i.e., ECSTELECOM and Hankukpackage go up and down completely randomly.
Pair Corralation between ECSTELECOM and Hankukpackage
Assuming the 90 days trading horizon ECSTELECOM Co is expected to generate 0.39 times more return on investment than Hankukpackage. However, ECSTELECOM Co is 2.58 times less risky than Hankukpackage. It trades about 0.11 of its potential returns per unit of risk. Hankukpackage Co is currently generating about 0.02 per unit of risk. If you would invest 287,000 in ECSTELECOM Co on September 14, 2024 and sell it today you would earn a total of 8,000 from holding ECSTELECOM Co or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECSTELECOM Co vs. Hankukpackage Co
Performance |
| Timeline |
| ECSTELECOM |
| Hankukpackage |
ECSTELECOM and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECSTELECOM and Hankukpackage
The main advantage of trading using opposite ECSTELECOM and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECSTELECOM position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| ECSTELECOM vs. Solution Advanced Technology | ECSTELECOM vs. Busan Industrial Co | ECSTELECOM vs. Busan Ind | ECSTELECOM vs. Sam Chun Dang |
| Hankukpackage vs. Solution Advanced Technology | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Sam Chun Dang |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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