Correlation Between Showbox Corp and HB Technology
Can any of the company-specific risk be diversified away by investing in both Showbox Corp and HB Technology 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 Showbox Corp and HB Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Showbox Corp and HB Technology TD, you can compare the effects of market volatilities on Showbox Corp and HB Technology 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 Showbox Corp with a short position of HB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Showbox Corp and HB Technology.
Diversification Opportunities for Showbox Corp and HB Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Showbox and 078150 is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Showbox Corp and HB Technology TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HB Technology TD and Showbox Corp 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 Showbox Corp are associated (or correlated) with HB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HB Technology TD has no effect on the direction of Showbox Corp i.e., Showbox Corp and HB Technology go up and down completely randomly.
Pair Corralation between Showbox Corp and HB Technology
Assuming the 90 days trading horizon Showbox Corp is expected to under-perform the HB Technology. In addition to that, Showbox Corp is 1.75 times more volatile than HB Technology TD. It trades about -0.06 of its total potential returns per unit of risk. HB Technology TD is currently generating about 0.55 per unit of volatility. If you would invest 154,400 in HB Technology TD on October 9, 2024 and sell it today you would earn a total of 59,100 from holding HB Technology TD or generate 38.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Showbox Corp vs. HB Technology TD
Performance |
| Timeline |
| Showbox Corp |
| HB Technology TD |
Showbox Corp and HB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Showbox Corp and HB Technology
The main advantage of trading using opposite Showbox Corp and HB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Showbox Corp position performs unexpectedly, HB Technology 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 HB Technology will offset losses from the drop in HB Technology's long position.| Showbox Corp vs. Dongwoo Farm To | Showbox Corp vs. Kisan Telecom Co | Showbox Corp vs. ECSTELECOM Co | Showbox Corp vs. GS Engineering Construction |
| HB Technology vs. LB Investment | HB Technology vs. KTB Investment Securities | HB Technology vs. Woori Technology Investment | HB Technology vs. GS Retail Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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