Correlation Between HB Technology and SEOJEON ELECTRIC
Can any of the company-specific risk be diversified away by investing in both HB Technology and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY, you can compare the effects of market volatilities on HB Technology and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and SEOJEON ELECTRIC.
Diversification Opportunities for HB Technology and SEOJEON ELECTRIC
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 078150 and SEOJEON is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and SEOJEON ELECTRIC MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOJEON ELECTRIC MAC 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 SEOJEON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOJEON ELECTRIC MAC has no effect on the direction of HB Technology i.e., HB Technology and SEOJEON ELECTRIC go up and down completely randomly.
Pair Corralation between HB Technology and SEOJEON ELECTRIC
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.06 times more return on investment than SEOJEON ELECTRIC. However, HB Technology is 1.06 times more volatile than SEOJEON ELECTRIC MACHINERY. It trades about 0.03 of its potential returns per unit of risk. SEOJEON ELECTRIC MACHINERY is currently generating about 0.0 per unit of risk. If you would invest 195,139 in HB Technology TD on October 18, 2024 and sell it today you would earn a total of 50,861 from holding HB Technology TD or generate 26.06% 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. SEOJEON ELECTRIC MACHINERY
Performance |
| Timeline |
| HB Technology TD |
| SEOJEON ELECTRIC MAC |
HB Technology and SEOJEON ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and SEOJEON ELECTRIC
The main advantage of trading using opposite HB Technology and SEOJEON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, SEOJEON ELECTRIC 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 SEOJEON ELECTRIC will offset losses from the drop in SEOJEON ELECTRIC's long position.| HB Technology vs. Leaders Technology Investment | HB Technology vs. Hwasung Industrial Co | HB Technology vs. Pureun Mutual Savings | HB Technology vs. Nh Investment And |
| SEOJEON ELECTRIC vs. HB Technology TD | SEOJEON ELECTRIC vs. NewFlex Technology Co | SEOJEON ELECTRIC vs. AeroSpace Technology of | SEOJEON ELECTRIC vs. Eugene Technology CoLtd |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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