Correlation Between HB Technology and Vaxcell Bio
Can any of the company-specific risk be diversified away by investing in both HB Technology and Vaxcell Bio 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 Vaxcell Bio 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 Vaxcell Bio Therapeutics Co, you can compare the effects of market volatilities on HB Technology and Vaxcell Bio 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 Vaxcell Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of HB Technology and Vaxcell Bio.
Diversification Opportunities for HB Technology and Vaxcell Bio
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 078150 and Vaxcell is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HB Technology TD and Vaxcell Bio Therapeutics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaxcell Bio Therapeu 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 Vaxcell Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaxcell Bio Therapeu has no effect on the direction of HB Technology i.e., HB Technology and Vaxcell Bio go up and down completely randomly.
Pair Corralation between HB Technology and Vaxcell Bio
Assuming the 90 days trading horizon HB Technology TD is expected to generate 1.92 times more return on investment than Vaxcell Bio. However, HB Technology is 1.92 times more volatile than Vaxcell Bio Therapeutics Co. It trades about 0.43 of its potential returns per unit of risk. Vaxcell Bio Therapeutics Co is currently generating about 0.09 per unit of risk. If you would invest 196,400 in HB Technology TD on October 25, 2024 and sell it today you would earn a total of 64,100 from holding HB Technology TD or generate 32.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
HB Technology TD vs. Vaxcell Bio Therapeutics Co
Performance |
| Timeline |
| HB Technology TD |
| Vaxcell Bio Therapeu |
HB Technology and Vaxcell Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HB Technology and Vaxcell Bio
The main advantage of trading using opposite HB Technology and Vaxcell Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HB Technology position performs unexpectedly, Vaxcell Bio 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 Vaxcell Bio will offset losses from the drop in Vaxcell Bio's long position.| HB Technology vs. ENERGYMACHINERY KOREA CoLtd | HB Technology vs. Ilji Technology Co | HB Technology vs. Eugene Technology CoLtd | HB Technology vs. Sungdo Engineering Construction |
| Vaxcell Bio vs. Korean Reinsurance Co | Vaxcell Bio vs. Hana Financial | Vaxcell Bio vs. DB Financial Investment | Vaxcell Bio vs. Lotte Non Life Insurance |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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