Correlation Between Duksan Hi and HYBE
Can any of the company-specific risk be diversified away by investing in both Duksan Hi and HYBE 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 HYBE 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 HYBE Co, you can compare the effects of market volatilities on Duksan Hi and HYBE 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 HYBE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and HYBE.
Diversification Opportunities for Duksan Hi and HYBE
Good diversification
The 3 months correlation between Duksan and HYBE is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and HYBE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBE 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 HYBE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBE has no effect on the direction of Duksan Hi i.e., Duksan Hi and HYBE go up and down completely randomly.
Pair Corralation between Duksan Hi and HYBE
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the HYBE. But the stock apears to be less risky and, when comparing its historical volatility, Duksan Hi Metal is 1.07 times less risky than HYBE. The stock trades about -0.18 of its potential returns per unit of risk. The HYBE Co is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 20,350,000 in HYBE Co on November 5, 2024 and sell it today you would earn a total of 2,150,000 from holding HYBE Co or generate 10.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. HYBE Co
Performance |
| Timeline |
| Duksan Hi Metal |
| HYBE |
Duksan Hi and HYBE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and HYBE
The main advantage of trading using opposite Duksan Hi and HYBE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi position performs unexpectedly, HYBE 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 HYBE will offset losses from the drop in HYBE's long position.| Duksan Hi vs. Ssangyong Information Communication | Duksan Hi vs. Lotte Data Communication | Duksan Hi vs. Display Tech Co | Duksan Hi vs. Homecast CoLtd |
| HYBE vs. PI Advanced Materials | HYBE vs. LEENO Industrial | HYBE vs. Pyung Hwa Industrial | HYBE vs. Seoyon Topmetal Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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