Correlation Between HB Technology and Taeyang Metal
Can any of the company-specific risk be diversified away by investing in both HB Technology and Taeyang Metal 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 HB Technology and Taeyang Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HB Technology TD and Taeyang Metal Industrial, you can compare the effects of market volatilities on HB Technology and Taeyang Metal 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 HB Technology with a short position of Taeyang Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Taeyang Metal.
Diversification Opportunities for HB Technology and Taeyang Metal
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between 078150 and Taeyang is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Taeyang Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taeyang Metal Industrial and HB Technology 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 HB Technology TD are associated (or correlated) with Taeyang Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taeyang Metal Industrial has no effect on the direction of HB Technology i.e., HB Technology and Taeyang Metal go up and down completely randomly.
Pair Corralation between HB Technology and Taeyang Metal
Assuming the 90 days trading horizon HB Technology TD is expected to generate 0.89 times more return on investment than Taeyang Metal. However, HB Technology TD is 1.12 times less risky than Taeyang Metal. It trades about -0.16 of its potential returns per unit of risk. Taeyang Metal Industrial is currently generating about -0.22 per unit of risk. If you would invest 231,500 in HB Technology TD on August 28, 2024 and sell it today you would lose (26,000) from holding HB Technology TD or give up 11.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Taeyang Metal Industrial
Performance |
| Timeline |
| HB Technology TD |
| Taeyang Metal Industrial |
HB Technology and Taeyang Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Taeyang Metal
The main advantage of trading using opposite HB Technology and Taeyang Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Taeyang Metal 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 Taeyang Metal will offset losses from the drop in Taeyang Metal's long position.| HB Technology vs. Korea Real Estate | HB Technology vs. Korea Ratings Co | HB Technology vs. IQuest Co | HB Technology vs. Wonbang Tech Co |
| Taeyang Metal vs. AptaBio Therapeutics | Taeyang Metal vs. Daewoo SBI SPAC | Taeyang Metal vs. Dream Security co | Taeyang Metal vs. Microfriend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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