Correlation Between HB Technology and Daou Technology
Can any of the company-specific risk be diversified away by investing in both HB Technology and Daou Technology 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 Daou Technology 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 Daou Technology, you can compare the effects of market volatilities on HB Technology and Daou Technology 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 Daou Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Daou Technology.
Diversification Opportunities for HB Technology and Daou Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 078150 and Daou is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Daou Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daou Technology 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 Daou Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daou Technology has no effect on the direction of HB Technology i.e., HB Technology and Daou Technology go up and down completely randomly.
Pair Corralation between HB Technology and Daou Technology
Assuming the 90 days trading horizon HB Technology TD is expected to generate 4.02 times more return on investment than Daou Technology. However, HB Technology is 4.02 times more volatile than Daou Technology. It trades about 0.37 of its potential returns per unit of risk. Daou Technology is currently generating about 0.04 per unit of risk. If you would invest 192,300 in HB Technology TD on October 28, 2024 and sell it today you would earn a total of 56,200 from holding HB Technology TD or generate 29.23% 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. Daou Technology
Performance |
| Timeline |
| HB Technology TD |
| Daou Technology |
HB Technology and Daou Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Daou Technology
The main advantage of trading using opposite HB Technology and Daou Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Daou Technology 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 Daou Technology will offset losses from the drop in Daou Technology's long position.| HB Technology vs. Adaptive Plasma Technology | HB Technology vs. NewFlex Technology Co | HB Technology vs. Ilji Technology Co | HB Technology vs. Eugene Technology CoLtd |
| Daou Technology vs. KB Financial Group | Daou Technology vs. Shinhan Financial Group | Daou Technology vs. Hana Financial | Daou Technology vs. Woori Financial Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |