Correlation Between AfreecaTV and Humasis
Can any of the company-specific risk be diversified away by investing in both AfreecaTV and Humasis 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 AfreecaTV and Humasis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AfreecaTV Co and Humasis Co, you can compare the effects of market volatilities on AfreecaTV and Humasis 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 AfreecaTV with a short position of Humasis. Check out your portfolio center. Please also check ongoing floating volatility patterns of AfreecaTV and Humasis.
Diversification Opportunities for AfreecaTV and Humasis
Very weak diversification
The 3 months correlation between AfreecaTV and Humasis is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AfreecaTV Co and Humasis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humasis and AfreecaTV 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 AfreecaTV Co are associated (or correlated) with Humasis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humasis has no effect on the direction of AfreecaTV i.e., AfreecaTV and Humasis go up and down completely randomly.
Pair Corralation between AfreecaTV and Humasis
Assuming the 90 days trading horizon AfreecaTV Co is expected to generate 0.42 times more return on investment than Humasis. However, AfreecaTV Co is 2.35 times less risky than Humasis. It trades about 0.05 of its potential returns per unit of risk. Humasis Co is currently generating about 0.0 per unit of risk. If you would invest 10,120,000 in AfreecaTV Co on August 28, 2024 and sell it today you would earn a total of 570,000 from holding AfreecaTV Co or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AfreecaTV Co vs. Humasis Co
Performance |
| Timeline |
| AfreecaTV |
| Humasis |
AfreecaTV and Humasis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AfreecaTV and Humasis
The main advantage of trading using opposite AfreecaTV and Humasis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AfreecaTV position performs unexpectedly, Humasis 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 Humasis will offset losses from the drop in Humasis' long position.| AfreecaTV vs. SS TECH | AfreecaTV vs. Busan Industrial Co | AfreecaTV vs. Busan Ind | AfreecaTV vs. Mirae Asset Daewoo |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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