Correlation Between HB Technology and CG Hi
Can any of the company-specific risk be diversified away by investing in both HB Technology and CG Hi 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 CG Hi 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 CG Hi Tech, you can compare the effects of market volatilities on HB Technology and CG Hi 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 CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and CG Hi.
Diversification Opportunities for HB Technology and CG Hi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 078150 and 264660 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech 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 CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of HB Technology i.e., HB Technology and CG Hi go up and down completely randomly.
Pair Corralation between HB Technology and CG Hi
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.25 times more return on investment than CG Hi. However, HB Technology is 1.25 times more volatile than CG Hi Tech. It trades about -0.21 of its potential returns per unit of risk. CG Hi Tech is currently generating about -0.39 per unit of risk. If you would invest 223,000 in HB Technology TD on September 2, 2024 and sell it today you would lose (33,500) from holding HB Technology TD or give up 15.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HB Technology TD vs. CG Hi Tech
Performance |
| Timeline |
| HB Technology TD |
| CG Hi Tech |
HB Technology and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and CG Hi
The main advantage of trading using opposite HB Technology and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |