Correlation Between Hyunwoo Industrial and Booster
Can any of the company-specific risk be diversified away by investing in both Hyunwoo Industrial and Booster 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 Hyunwoo Industrial and Booster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyunwoo Industrial Co and Booster Co, you can compare the effects of market volatilities on Hyunwoo Industrial and Booster 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 Hyunwoo Industrial with a short position of Booster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyunwoo Industrial and Booster.
Diversification Opportunities for Hyunwoo Industrial and Booster
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hyunwoo and Booster is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hyunwoo Industrial Co and Booster Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booster and Hyunwoo Industrial 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 Hyunwoo Industrial Co are associated (or correlated) with Booster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booster has no effect on the direction of Hyunwoo Industrial i.e., Hyunwoo Industrial and Booster go up and down completely randomly.
Pair Corralation between Hyunwoo Industrial and Booster
Assuming the 90 days trading horizon Hyunwoo Industrial Co is expected to generate 1.99 times more return on investment than Booster. However, Hyunwoo Industrial is 1.99 times more volatile than Booster Co. It trades about 0.14 of its potential returns per unit of risk. Booster Co is currently generating about -0.09 per unit of risk. If you would invest 252,669 in Hyunwoo Industrial Co on October 25, 2024 and sell it today you would earn a total of 12,331 from holding Hyunwoo Industrial Co or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyunwoo Industrial Co vs. Booster Co
Performance |
| Timeline |
| Hyunwoo Industrial |
| Booster |
Hyunwoo Industrial and Booster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyunwoo Industrial and Booster
The main advantage of trading using opposite Hyunwoo Industrial and Booster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyunwoo Industrial position performs unexpectedly, Booster 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 Booster will offset losses from the drop in Booster's long position.| Hyunwoo Industrial vs. SK Hynix | Hyunwoo Industrial vs. LX Semicon Co | Hyunwoo Industrial vs. Tokai Carbon Korea | Hyunwoo Industrial vs. People Technology |
| Booster vs. Pan Entertainment Co | Booster vs. Nasmedia Co | Booster vs. ABOV Semiconductor Co | Booster vs. YG Entertainment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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