Correlation Between Puloon Technology and HansBiomed
Can any of the company-specific risk be diversified away by investing in both Puloon Technology and HansBiomed 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 Puloon Technology and HansBiomed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puloon Technology and HansBiomed, you can compare the effects of market volatilities on Puloon Technology and HansBiomed 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 Puloon Technology with a short position of HansBiomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puloon Technology and HansBiomed.
Diversification Opportunities for Puloon Technology and HansBiomed
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Puloon and HansBiomed is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Puloon Technology and HansBiomed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HansBiomed and Puloon 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 Puloon Technology are associated (or correlated) with HansBiomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HansBiomed has no effect on the direction of Puloon Technology i.e., Puloon Technology and HansBiomed go up and down completely randomly.
Pair Corralation between Puloon Technology and HansBiomed
Assuming the 90 days trading horizon Puloon Technology is expected to generate 1.07 times more return on investment than HansBiomed. However, Puloon Technology is 1.07 times more volatile than HansBiomed. It trades about 0.01 of its potential returns per unit of risk. HansBiomed is currently generating about 0.0 per unit of risk. If you would invest 733,233 in Puloon Technology on August 31, 2024 and sell it today you would lose (45,233) from holding Puloon Technology or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Puloon Technology vs. HansBiomed
Performance |
| Timeline |
| Puloon Technology |
| HansBiomed |
Puloon Technology and HansBiomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puloon Technology and HansBiomed
The main advantage of trading using opposite Puloon Technology and HansBiomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puloon Technology position performs unexpectedly, HansBiomed 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 HansBiomed will offset losses from the drop in HansBiomed's long position.| Puloon Technology vs. Dongsin Engineering Construction | Puloon Technology vs. Doosan Fuel Cell | Puloon Technology vs. Daishin Balance 1 | Puloon Technology vs. Total Soft Bank |
| HansBiomed vs. Cuckoo Homesys Co | HansBiomed vs. Hansol Homedeco Co | HansBiomed vs. Hankook Furniture Co | HansBiomed vs. Hankook Steel 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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