Correlation Between Duksan Hi and Hanjin Transportation
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Hanjin Transportation 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 Duksan Hi and Hanjin Transportation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Hanjin Transportation Co, you can compare the effects of market volatilities on Duksan Hi and Hanjin Transportation 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 Duksan Hi with a short position of Hanjin Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Hanjin Transportation.
Diversification Opportunities for Duksan Hi and Hanjin Transportation
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Duksan and Hanjin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Hanjin Transportation Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjin Transportation and Duksan Hi 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 Duksan Hi Metal are associated (or correlated) with Hanjin Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjin Transportation has no effect on the direction of Duksan Hi i.e., Duksan Hi and Hanjin Transportation go up and down completely randomly.
Pair Corralation between Duksan Hi and Hanjin Transportation
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Hanjin Transportation. In addition to that, Duksan Hi is 1.89 times more volatile than Hanjin Transportation Co. It trades about -0.07 of its total potential returns per unit of risk. Hanjin Transportation Co is currently generating about -0.07 per unit of volatility. If you would invest 2,584,120 in Hanjin Transportation Co on November 3, 2024 and sell it today you would lose (645,120) from holding Hanjin Transportation Co or give up 24.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Hanjin Transportation Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Hanjin Transportation |
Duksan Hi and Hanjin Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Hanjin Transportation
The main advantage of trading using opposite Duksan Hi and Hanjin Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Hanjin Transportation 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 Hanjin Transportation will offset losses from the drop in Hanjin Transportation's long position.| Duksan Hi vs. Wireless Power Amplifier | Duksan Hi vs. Ssangyong Information Communication | Duksan Hi vs. TS Investment Corp | Duksan Hi vs. Atinum Investment Co |
| Hanjin Transportation vs. Korea Air Svc | Hanjin Transportation vs. Orbitech Co | Hanjin Transportation vs. SS TECH | Hanjin Transportation vs. Solution Advanced Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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