Correlation Between Duksan Hi and Hansol Homedeco
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and Hansol Homedeco 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 Hansol Homedeco 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 Hansol Homedeco Co, you can compare the effects of market volatilities on Duksan Hi and Hansol Homedeco 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 Hansol Homedeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Hansol Homedeco.
Diversification Opportunities for Duksan Hi and Hansol Homedeco
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Duksan and Hansol is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Hansol Homedeco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Homedeco 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 Hansol Homedeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Homedeco has no effect on the direction of Duksan Hi i.e., Duksan Hi and Hansol Homedeco go up and down completely randomly.
Pair Corralation between Duksan Hi and Hansol Homedeco
Assuming the 90 days trading horizon Duksan Hi is expected to generate 11.42 times less return on investment than Hansol Homedeco. But when comparing it to its historical volatility, Duksan Hi Metal is 4.16 times less risky than Hansol Homedeco. It trades about 0.14 of its potential returns per unit of risk. Hansol Homedeco Co is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 64,300 in Hansol Homedeco Co on October 30, 2024 and sell it today you would earn a total of 43,200 from holding Hansol Homedeco Co or generate 67.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Hansol Homedeco Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Hansol Homedeco |
Duksan Hi and Hansol Homedeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Hansol Homedeco
The main advantage of trading using opposite Duksan Hi and Hansol Homedeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, Hansol Homedeco 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 Hansol Homedeco will offset losses from the drop in Hansol Homedeco's long position.| Duksan Hi vs. Shinhan Inverse Silver | Duksan Hi vs. JYP Entertainment Corp | Duksan Hi vs. YG Entertainment | Duksan Hi vs. Barunson Entertainment Arts |
| Hansol Homedeco vs. KakaoBank Corp | Hansol Homedeco vs. Seoul Food Industrial | Hansol Homedeco vs. FOODWELL Co | Hansol Homedeco vs. Lotte Non Life Insurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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