Correlation Between HB Technology and Taegu Broadcasting
Can any of the company-specific risk be diversified away by investing in both HB Technology and Taegu Broadcasting 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 Taegu Broadcasting 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 Taegu Broadcasting, you can compare the effects of market volatilities on HB Technology and Taegu Broadcasting 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 Taegu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Taegu Broadcasting.
Diversification Opportunities for HB Technology and Taegu Broadcasting
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 078150 and Taegu is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Taegu Broadcasting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taegu Broadcasting 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 Taegu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taegu Broadcasting has no effect on the direction of HB Technology i.e., HB Technology and Taegu Broadcasting go up and down completely randomly.
Pair Corralation between HB Technology and Taegu Broadcasting
Assuming the 90 days trading horizon HB Technology TD is expected to under-perform the Taegu Broadcasting. In addition to that, HB Technology is 2.98 times more volatile than Taegu Broadcasting. It trades about -0.07 of its total potential returns per unit of risk. Taegu Broadcasting is currently generating about -0.05 per unit of volatility. If you would invest 92,300 in Taegu Broadcasting on September 3, 2024 and sell it today you would lose (11,500) from holding Taegu Broadcasting or give up 12.46% 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. Taegu Broadcasting
Performance |
| Timeline |
| HB Technology TD |
| Taegu Broadcasting |
HB Technology and Taegu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Taegu Broadcasting
The main advantage of trading using opposite HB Technology and Taegu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Taegu Broadcasting 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 Taegu Broadcasting will offset losses from the drop in Taegu Broadcasting's long position.| HB Technology vs. Dongsin Engineering Construction | HB Technology vs. Doosan Fuel Cell | HB Technology vs. Daishin Balance 1 | HB Technology vs. Total Soft Bank |
| Taegu Broadcasting vs. Korea New Network | Taegu Broadcasting vs. ICD Co | Taegu Broadcasting vs. DYPNF CoLtd | Taegu Broadcasting vs. Busan Industrial 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 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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