Correlation Between HB Technology and Playgram
Can any of the company-specific risk be diversified away by investing in both HB Technology and Playgram 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 Playgram 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 Playgram Co, you can compare the effects of market volatilities on HB Technology and Playgram 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 Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Playgram.
Diversification Opportunities for HB Technology and Playgram
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 078150 and Playgram is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram 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 Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of HB Technology i.e., HB Technology and Playgram go up and down completely randomly.
Pair Corralation between HB Technology and Playgram
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.36 times more return on investment than Playgram. However, HB Technology is 1.36 times more volatile than Playgram Co. It trades about 0.34 of its potential returns per unit of risk. Playgram Co is currently generating about -0.01 per unit of risk. If you would invest 199,400 in HB Technology TD on November 1, 2024 and sell it today you would earn a total of 49,100 from holding HB Technology TD or generate 24.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Playgram Co
Performance |
| Timeline |
| HB Technology TD |
| Playgram |
HB Technology and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Playgram
The main advantage of trading using opposite HB Technology and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| HB Technology vs. Pureun Mutual Savings | HB Technology vs. Sewoon Medical Co | HB Technology vs. NH Investment Securities | HB Technology vs. DB Financial Investment |
| Playgram vs. Handok Clean Tech | Playgram vs. Next Entertainment World | Playgram vs. MEDIANA CoLtd | Playgram vs. Cube Entertainment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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