Correlation Between HB Technology and Guyoung Technology
Can any of the company-specific risk be diversified away by investing in both HB Technology and Guyoung 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 Guyoung 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 Guyoung Technology Co, you can compare the effects of market volatilities on HB Technology and Guyoung 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 Guyoung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Guyoung Technology.
Diversification Opportunities for HB Technology and Guyoung Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 078150 and Guyoung is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Guyoung Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guyoung 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 Guyoung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guyoung Technology has no effect on the direction of HB Technology i.e., HB Technology and Guyoung Technology go up and down completely randomly.
Pair Corralation between HB Technology and Guyoung Technology
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.56 times more return on investment than Guyoung Technology. However, HB Technology is 1.56 times more volatile than Guyoung Technology Co. It trades about 0.02 of its potential returns per unit of risk. Guyoung Technology Co is currently generating about 0.0 per unit of risk. If you would invest 187,405 in HB Technology TD on August 28, 2024 and sell it today you would earn a total of 17,595 from holding HB Technology TD or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. Guyoung Technology Co
Performance |
| Timeline |
| HB Technology TD |
| Guyoung Technology |
HB Technology and Guyoung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Guyoung Technology
The main advantage of trading using opposite HB Technology and Guyoung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Guyoung 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 Guyoung Technology will offset losses from the drop in Guyoung Technology's long position.| HB Technology vs. Korea Real Estate | HB Technology vs. Korea Ratings Co | HB Technology vs. IQuest Co | HB Technology vs. Wonbang Tech Co |
| Guyoung Technology vs. Busan Industrial Co | Guyoung Technology vs. Busan Ind | Guyoung Technology vs. Mirae Asset Daewoo | Guyoung Technology vs. UNISEM 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| 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 | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |