Correlation Between Com2uS and HANA Micron
Can any of the company-specific risk be diversified away by investing in both Com2uS and HANA Micron 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 Com2uS and HANA Micron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com2uS and HANA Micron, you can compare the effects of market volatilities on Com2uS and HANA Micron 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 Com2uS with a short position of HANA Micron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com2uS and HANA Micron.
Diversification Opportunities for Com2uS and HANA Micron
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Com2uS and HANA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Com2uS and HANA Micron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANA Micron and Com2uS 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 Com2uS are associated (or correlated) with HANA Micron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANA Micron has no effect on the direction of Com2uS i.e., Com2uS and HANA Micron go up and down completely randomly.
Pair Corralation between Com2uS and HANA Micron
Assuming the 90 days trading horizon Com2uS is expected to generate 0.95 times more return on investment than HANA Micron. However, Com2uS is 1.05 times less risky than HANA Micron. It trades about 0.15 of its potential returns per unit of risk. HANA Micron is currently generating about -0.17 per unit of risk. If you would invest 4,090,000 in Com2uS on September 13, 2024 and sell it today you would earn a total of 815,000 from holding Com2uS or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com2uS vs. HANA Micron
Performance |
| Timeline |
| Com2uS |
| HANA Micron |
Com2uS and HANA Micron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com2uS and HANA Micron
The main advantage of trading using opposite Com2uS and HANA Micron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com2uS position performs unexpectedly, HANA Micron 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 HANA Micron will offset losses from the drop in HANA Micron's long position.| Com2uS vs. YG Entertainment | Com2uS vs. JYP Entertainment | Com2uS vs. Cube Entertainment | Com2uS vs. FNC Entertainment Co |
| HANA Micron vs. SKONEC Entertainment Co | HANA Micron vs. MEDIANA CoLtd | HANA Micron vs. T3 Entertainment Co | HANA Micron vs. Genie Music |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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