Correlation Between Histeel and Myoung Shin
Can any of the company-specific risk be diversified away by investing in both Histeel and Myoung Shin 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 Histeel and Myoung Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Histeel and Myoung Shin Industrial, you can compare the effects of market volatilities on Histeel and Myoung Shin 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 Histeel with a short position of Myoung Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Histeel and Myoung Shin.
Diversification Opportunities for Histeel and Myoung Shin
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Histeel and Myoung is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Histeel and Myoung Shin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myoung Shin Industrial and Histeel 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 Histeel are associated (or correlated) with Myoung Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myoung Shin Industrial has no effect on the direction of Histeel i.e., Histeel and Myoung Shin go up and down completely randomly.
Pair Corralation between Histeel and Myoung Shin
Assuming the 90 days trading horizon Histeel is expected to generate 1.01 times more return on investment than Myoung Shin. However, Histeel is 1.01 times more volatile than Myoung Shin Industrial. It trades about -0.14 of its potential returns per unit of risk. Myoung Shin Industrial is currently generating about -0.19 per unit of risk. If you would invest 319,000 in Histeel on September 12, 2024 and sell it today you would lose (49,500) from holding Histeel or give up 15.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Histeel vs. Myoung Shin Industrial
Performance |
| Timeline |
| Histeel |
| Myoung Shin Industrial |
Histeel and Myoung Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Histeel and Myoung Shin
The main advantage of trading using opposite Histeel and Myoung Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Histeel position performs unexpectedly, Myoung Shin 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 Myoung Shin will offset losses from the drop in Myoung Shin's long position.| Histeel vs. LG Chemicals | Histeel vs. POSCO Holdings | Histeel vs. Hanwha Solutions | Histeel vs. Lotte Chemical Corp |
| Myoung Shin vs. LG Display Co | Myoung Shin vs. Phoenix Materials Co | Myoung Shin vs. Mgame Corp | Myoung Shin vs. Kakao Games Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |