Correlation Between HB Technology and Shinsegae Information
Can any of the company-specific risk be diversified away by investing in both HB Technology and Shinsegae Information 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 Shinsegae Information 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 Shinsegae Information Communication, you can compare the effects of market volatilities on HB Technology and Shinsegae Information 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 Shinsegae Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Shinsegae Information.
Diversification Opportunities for HB Technology and Shinsegae Information
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 078150 and Shinsegae is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Shinsegae Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Information 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 Shinsegae Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Information has no effect on the direction of HB Technology i.e., HB Technology and Shinsegae Information go up and down completely randomly.
Pair Corralation between HB Technology and Shinsegae Information
Assuming the 90 days trading horizon HB Technology TD is expected to under-perform the Shinsegae Information. In addition to that, HB Technology is 2.8 times more volatile than Shinsegae Information Communication. It trades about -0.06 of its total potential returns per unit of risk. Shinsegae Information Communication is currently generating about -0.1 per unit of volatility. If you would invest 1,087,000 in Shinsegae Information Communication on September 3, 2024 and sell it today you would lose (208,000) from holding Shinsegae Information Communication or give up 19.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Shinsegae Information Communic
Performance |
| Timeline |
| HB Technology TD |
| Shinsegae Information |
HB Technology and Shinsegae Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Shinsegae Information
The main advantage of trading using opposite HB Technology and Shinsegae Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Shinsegae Information 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 Shinsegae Information will offset losses from the drop in Shinsegae Information'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 |
| Shinsegae Information vs. Sangsangin Investment Securities | Shinsegae Information vs. NH Investment Securities | Shinsegae Information vs. GS Retail Co | Shinsegae Information vs. DB Financial Investment |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |