Correlation Between Korea Computer and Haesung Optics
Can any of the company-specific risk be diversified away by investing in both Korea Computer and Haesung Optics 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 Korea Computer and Haesung Optics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Computer Terminal and Haesung Optics Co, you can compare the effects of market volatilities on Korea Computer and Haesung Optics 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 Korea Computer with a short position of Haesung Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Computer and Haesung Optics.
Diversification Opportunities for Korea Computer and Haesung Optics
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Korea and Haesung is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Korea Computer Terminal and Haesung Optics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung Optics and Korea Computer 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 Korea Computer Terminal are associated (or correlated) with Haesung Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung Optics has no effect on the direction of Korea Computer i.e., Korea Computer and Haesung Optics go up and down completely randomly.
Pair Corralation between Korea Computer and Haesung Optics
Assuming the 90 days trading horizon Korea Computer Terminal is expected to generate 0.93 times more return on investment than Haesung Optics. However, Korea Computer Terminal is 1.07 times less risky than Haesung Optics. It trades about -0.01 of its potential returns per unit of risk. Haesung Optics Co is currently generating about -0.05 per unit of risk. If you would invest 368,151 in Korea Computer Terminal on August 30, 2024 and sell it today you would lose (121,651) from holding Korea Computer Terminal or give up 33.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.1% |
| Values | Daily Returns |
Korea Computer Terminal vs. Haesung Optics Co
Performance |
| Timeline |
| Korea Computer Terminal |
| Haesung Optics |
Korea Computer and Haesung Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Computer and Haesung Optics
The main advantage of trading using opposite Korea Computer and Haesung Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Computer position performs unexpectedly, Haesung Optics 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 Haesung Optics will offset losses from the drop in Haesung Optics' long position.| Korea Computer vs. Sung Bo Chemicals | Korea Computer vs. Youngbo Chemical Co | Korea Computer vs. Miwon Chemical | Korea Computer vs. Youl Chon Chemical |
| Haesung Optics vs. Hankukpackage Co | Haesung Optics vs. Shinsegae Information Communication | Haesung Optics vs. Playgram Co | Haesung Optics vs. Nice Information Telecommunication |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |