Correlation Between HB Technology and Asiana Airlines
Can any of the company-specific risk be diversified away by investing in both HB Technology and Asiana Airlines 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 Asiana Airlines 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 Asiana Airlines, you can compare the effects of market volatilities on HB Technology and Asiana Airlines 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 Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Asiana Airlines.
Diversification Opportunities for HB Technology and Asiana Airlines
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 078150 and Asiana is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines 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 Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of HB Technology i.e., HB Technology and Asiana Airlines go up and down completely randomly.
Pair Corralation between HB Technology and Asiana Airlines
Assuming the 90 days trading horizon HB Technology TD is expected to under-perform the Asiana Airlines. In addition to that, HB Technology is 1.36 times more volatile than Asiana Airlines. It trades about -0.24 of its total potential returns per unit of risk. Asiana Airlines is currently generating about 0.16 per unit of volatility. If you would invest 971,000 in Asiana Airlines on August 25, 2024 and sell it today you would earn a total of 70,000 from holding Asiana Airlines or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Asiana Airlines
Performance |
| Timeline |
| HB Technology TD |
| Asiana Airlines |
HB Technology and Asiana Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Asiana Airlines
The main advantage of trading using opposite HB Technology and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' long position.| HB Technology vs. Daishin Information Communications | HB Technology vs. Korea Information Communications | HB Technology vs. Nice Information Telecommunication | HB Technology vs. Youngsin Metal Industrial |
| Asiana Airlines vs. CJ Seafood Corp | Asiana Airlines vs. Ssangyong Information Communication | Asiana Airlines vs. Hankukpackage Co | Asiana Airlines vs. Organic Special Pet |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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