Correlation Between Duksan Hi and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Duksan Hi 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 Duksan Hi and Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Duksan Hi 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 Duksan Hi with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Hankukpackage.
Diversification Opportunities for Duksan Hi and Hankukpackage
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Duksan and Hankukpackage is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 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 Duksan Hi i.e., Duksan Hi and Hankukpackage go up and down completely randomly.
Pair Corralation between Duksan Hi and Hankukpackage
Assuming the 90 days trading horizon Duksan Hi Metal is expected to generate 1.81 times more return on investment than Hankukpackage. However, Duksan Hi is 1.81 times more volatile than Hankukpackage Co. It trades about 0.0 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.03 per unit of risk. If you would invest 541,000 in Duksan Hi Metal on October 13, 2024 and sell it today you would lose (136,000) from holding Duksan Hi Metal or give up 25.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Hankukpackage Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Hankukpackage |
Duksan Hi and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Hankukpackage
The main advantage of trading using opposite Duksan Hi and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi 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.| Duksan Hi vs. DB Financial Investment | Duksan Hi vs. Hana Financial | Duksan Hi vs. LG Household Healthcare | Duksan Hi vs. Woori Financial Group |
| Hankukpackage vs. Hanjoo Light Metal | Hankukpackage vs. Miwon Chemicals Co | Hankukpackage vs. Lotte Data Communication | Hankukpackage vs. Duksan Hi Metal |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |