Correlation Between HB Technology and Cytogen
Can any of the company-specific risk be diversified away by investing in both HB Technology and Cytogen 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 Cytogen 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 Cytogen, you can compare the effects of market volatilities on HB Technology and Cytogen 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 Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Cytogen.
Diversification Opportunities for HB Technology and Cytogen
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 078150 and Cytogen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen 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 Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of HB Technology i.e., HB Technology and Cytogen go up and down completely randomly.
Pair Corralation between HB Technology and Cytogen
Assuming the 90 days trading horizon HB Technology TD is expected to generate 0.67 times more return on investment than Cytogen. However, HB Technology TD is 1.5 times less risky than Cytogen. It trades about -0.24 of its potential returns per unit of risk. Cytogen is currently generating about -0.32 per unit of risk. If you would invest 209,000 in HB Technology TD on September 12, 2024 and sell it today you would lose (42,700) from holding HB Technology TD or give up 20.43% 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. Cytogen
Performance |
| Timeline |
| HB Technology TD |
| Cytogen |
HB Technology and Cytogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Cytogen
The main advantage of trading using opposite HB Technology and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.| HB Technology vs. Cube Entertainment | HB Technology vs. Dreamus Company | HB Technology vs. LG Energy Solution | HB Technology vs. Dongwon System |
| Cytogen vs. YG Entertainment | Cytogen vs. Tamul Multimedia Co | Cytogen vs. J Steel Co | Cytogen vs. Husteel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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