Correlation Between HJ ShipBuilding and Mobile Appliance
Can any of the company-specific risk be diversified away by investing in both HJ ShipBuilding and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance, you can compare the effects of market volatilities on HJ ShipBuilding and Mobile Appliance 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 Mobile Appliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of HJ ShipBuilding and Mobile Appliance.
Diversification Opportunities for HJ ShipBuilding and Mobile Appliance
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between 097230 and Mobile is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding HJ ShipBuilding Construction and Mobile Appliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobile Appliance 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 Mobile Appliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobile Appliance has no effect on the direction of HJ ShipBuilding i.e., HJ ShipBuilding and Mobile Appliance go up and down completely randomly.
Pair Corralation between HJ ShipBuilding and Mobile Appliance
Assuming the 90 days trading horizon HJ ShipBuilding Construction is expected to generate 1.0 times more return on investment than Mobile Appliance. However, HJ ShipBuilding is 1.0 times more volatile than Mobile Appliance. It trades about 0.04 of its potential returns per unit of risk. Mobile Appliance is currently generating about -0.02 per unit of risk. If you would invest 379,500 in HJ ShipBuilding Construction on September 3, 2024 and sell it today you would earn a total of 70,500 from holding HJ ShipBuilding Construction or generate 18.58% 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. Mobile Appliance
Performance |
| Timeline |
| HJ ShipBuilding Cons |
| Mobile Appliance |
HJ ShipBuilding and Mobile Appliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HJ ShipBuilding and Mobile Appliance
The main advantage of trading using opposite HJ ShipBuilding and Mobile Appliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HJ ShipBuilding position performs unexpectedly, Mobile Appliance 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 Mobile Appliance will offset losses from the drop in Mobile Appliance'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 |
| Mobile Appliance vs. Daishin Information Communications | Mobile Appliance vs. BNK Financial Group | Mobile Appliance vs. Jb Financial | Mobile Appliance vs. Shinhan Financial Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |