Correlation Between HJ ShipBuilding and Kyeryong Construction
Can any of the company-specific risk be diversified away by investing in both HJ ShipBuilding and Kyeryong Construction 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 HJ ShipBuilding and Kyeryong Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HJ ShipBuilding Construction and Kyeryong Construction Industrial, you can compare the effects of market volatilities on HJ ShipBuilding and Kyeryong Construction 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 HJ ShipBuilding with a short position of Kyeryong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of HJ ShipBuilding and Kyeryong Construction.
Diversification Opportunities for HJ ShipBuilding and Kyeryong Construction
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between 097230 and Kyeryong is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding HJ ShipBuilding Construction and Kyeryong Construction Industri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyeryong Construction and HJ ShipBuilding 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 HJ ShipBuilding Construction are associated (or correlated) with Kyeryong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyeryong Construction has no effect on the direction of HJ ShipBuilding i.e., HJ ShipBuilding and Kyeryong Construction go up and down completely randomly.
Pair Corralation between HJ ShipBuilding and Kyeryong Construction
Assuming the 90 days trading horizon HJ ShipBuilding Construction is expected to generate 6.41 times more return on investment than Kyeryong Construction. However, HJ ShipBuilding is 6.41 times more volatile than Kyeryong Construction Industrial. It trades about 0.55 of its potential returns per unit of risk. Kyeryong Construction Industrial is currently generating about -0.05 per unit of risk. If you would invest 225,000 in HJ ShipBuilding Construction on September 3, 2024 and sell it today you would earn a total of 230,500 from holding HJ ShipBuilding Construction or generate 102.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HJ ShipBuilding Construction vs. Kyeryong Construction Industri
Performance |
| Timeline |
| HJ ShipBuilding Cons |
| Kyeryong Construction |
HJ ShipBuilding and Kyeryong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HJ ShipBuilding and Kyeryong Construction
The main advantage of trading using opposite HJ ShipBuilding and Kyeryong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HJ ShipBuilding position performs unexpectedly, Kyeryong Construction 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 Kyeryong Construction will offset losses from the drop in Kyeryong Construction's long position.| HJ ShipBuilding vs. LG Display | HJ ShipBuilding vs. Hyundai Motor | HJ ShipBuilding vs. Hyundai Motor Co | HJ ShipBuilding vs. Hyundai Motor Co |
| Kyeryong Construction vs. AptaBio Therapeutics | Kyeryong Construction vs. Daewoo SBI SPAC | Kyeryong Construction vs. Dream Security co | Kyeryong Construction vs. Microfriend |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |