Correlation Between HJ ShipBuilding and Digital Multimedia
Can any of the company-specific risk be diversified away by investing in both HJ ShipBuilding and Digital Multimedia 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 Digital Multimedia 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 Digital Multimedia Technology, you can compare the effects of market volatilities on HJ ShipBuilding and Digital Multimedia 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 Digital Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of HJ ShipBuilding and Digital Multimedia.
Diversification Opportunities for HJ ShipBuilding and Digital Multimedia
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 097230 and Digital is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HJ ShipBuilding Construction and Digital Multimedia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Multimedia 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 Digital Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Multimedia has no effect on the direction of HJ ShipBuilding i.e., HJ ShipBuilding and Digital Multimedia go up and down completely randomly.
Pair Corralation between HJ ShipBuilding and Digital Multimedia
Assuming the 90 days trading horizon HJ ShipBuilding is expected to generate 1.02 times less return on investment than Digital Multimedia. In addition to that, HJ ShipBuilding is 1.37 times more volatile than Digital Multimedia Technology. It trades about 0.05 of its total potential returns per unit of risk. Digital Multimedia Technology is currently generating about 0.08 per unit of volatility. If you would invest 198,400 in Digital Multimedia Technology on November 29, 2024 and sell it today you would earn a total of 8,100 from holding Digital Multimedia Technology or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HJ ShipBuilding Construction vs. Digital Multimedia Technology
Performance |
| Timeline |
| HJ ShipBuilding Cons |
| Digital Multimedia |
HJ ShipBuilding and Digital Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HJ ShipBuilding and Digital Multimedia
The main advantage of trading using opposite HJ ShipBuilding and Digital Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HJ ShipBuilding position performs unexpectedly, Digital Multimedia 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 Digital Multimedia will offset losses from the drop in Digital Multimedia's long position.| HJ ShipBuilding vs. Digital Imaging Technology | HJ ShipBuilding vs. Daou Technology | HJ ShipBuilding vs. Hanwha InvestmentSecurities Co | HJ ShipBuilding vs. Seers Technology |
| Digital Multimedia vs. Hana Materials | Digital Multimedia vs. Nable Communications | Digital Multimedia vs. National Plastic Co | Digital Multimedia vs. Samick Musical Instruments |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |