Correlation Between HJ ShipBuilding and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both HJ ShipBuilding and ABOV Semiconductor 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 ABOV Semiconductor 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 ABOV Semiconductor Co, you can compare the effects of market volatilities on HJ ShipBuilding and ABOV Semiconductor 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 ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HJ ShipBuilding and ABOV Semiconductor.
Diversification Opportunities for HJ ShipBuilding and ABOV Semiconductor
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 097230 and ABOV is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding HJ ShipBuilding Construction and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor 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 ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of HJ ShipBuilding i.e., HJ ShipBuilding and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between HJ ShipBuilding and ABOV Semiconductor
Assuming the 90 days trading horizon HJ ShipBuilding Construction is expected to generate 0.8 times more return on investment than ABOV Semiconductor. However, HJ ShipBuilding Construction is 1.25 times less risky than ABOV Semiconductor. It trades about 0.06 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about 0.03 per unit of risk. If you would invest 345,500 in HJ ShipBuilding Construction on November 28, 2024 and sell it today you would earn a total of 303,500 from holding HJ ShipBuilding Construction or generate 87.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HJ ShipBuilding Construction vs. ABOV Semiconductor Co
Performance |
| Timeline |
| HJ ShipBuilding Cons |
| ABOV Semiconductor |
HJ ShipBuilding and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HJ ShipBuilding and ABOV Semiconductor
The main advantage of trading using opposite HJ ShipBuilding and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HJ ShipBuilding position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| HJ ShipBuilding vs. Daishin Information Communications | HJ ShipBuilding vs. Mobileleader CoLtd | HJ ShipBuilding vs. Seers Technology | HJ ShipBuilding vs. Hana Technology Co |
| ABOV Semiconductor vs. Aprogen Healthcare Games | ABOV Semiconductor vs. DB Financial Investment | ABOV Semiconductor vs. Industrial Bank | ABOV Semiconductor vs. Koryo Credit Information |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |