Correlation Between HB Technology and Youngbo Chemical
Can any of the company-specific risk be diversified away by investing in both HB Technology and Youngbo Chemical 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 Youngbo Chemical 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 Youngbo Chemical Co, you can compare the effects of market volatilities on HB Technology and Youngbo Chemical 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 Youngbo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Youngbo Chemical.
Diversification Opportunities for HB Technology and Youngbo Chemical
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 078150 and Youngbo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Youngbo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngbo Chemical 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 Youngbo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngbo Chemical has no effect on the direction of HB Technology i.e., HB Technology and Youngbo Chemical go up and down completely randomly.
Pair Corralation between HB Technology and Youngbo Chemical
Assuming the 90 days trading horizon HB Technology TD is expected to generate 2.81 times more return on investment than Youngbo Chemical. However, HB Technology is 2.81 times more volatile than Youngbo Chemical Co. It trades about 0.04 of its potential returns per unit of risk. Youngbo Chemical Co is currently generating about 0.02 per unit of risk. If you would invest 191,371 in HB Technology TD on October 25, 2024 and sell it today you would earn a total of 69,129 from holding HB Technology TD or generate 36.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Youngbo Chemical Co
Performance |
| Timeline |
| HB Technology TD |
| Youngbo Chemical |
HB Technology and Youngbo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Youngbo Chemical
The main advantage of trading using opposite HB Technology and Youngbo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Youngbo Chemical 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 Youngbo Chemical will offset losses from the drop in Youngbo Chemical's long position.| HB Technology vs. ENERGYMACHINERY KOREA CoLtd | HB Technology vs. Ilji Technology Co | HB Technology vs. Eugene Technology CoLtd | HB Technology vs. Sungdo Engineering Construction |
| Youngbo Chemical vs. Dongnam Chemical Co | Youngbo Chemical vs. Automobile Pc | Youngbo Chemical vs. INFINITT Healthcare Co | Youngbo Chemical vs. Infinitt Healthcare 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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