Correlation Between HJ ShipBuilding and Foodnamoo
Can any of the company-specific risk be diversified away by investing in both HJ ShipBuilding and Foodnamoo 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 Foodnamoo 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 Foodnamoo, you can compare the effects of market volatilities on HJ ShipBuilding and Foodnamoo 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 Foodnamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of HJ ShipBuilding and Foodnamoo.
Diversification Opportunities for HJ ShipBuilding and Foodnamoo
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 097230 and Foodnamoo is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding HJ ShipBuilding Construction and Foodnamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodnamoo 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 Foodnamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodnamoo has no effect on the direction of HJ ShipBuilding i.e., HJ ShipBuilding and Foodnamoo go up and down completely randomly.
Pair Corralation between HJ ShipBuilding and Foodnamoo
Assuming the 90 days trading horizon HJ ShipBuilding is expected to generate 1.11 times less return on investment than Foodnamoo. In addition to that, HJ ShipBuilding is 2.17 times more volatile than Foodnamoo. It trades about 0.07 of its total potential returns per unit of risk. Foodnamoo is currently generating about 0.16 per unit of volatility. If you would invest 255,500 in Foodnamoo on November 27, 2024 and sell it today you would earn a total of 15,500 from holding Foodnamoo or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HJ ShipBuilding Construction vs. Foodnamoo
Performance |
| Timeline |
| HJ ShipBuilding Cons |
| Foodnamoo |
HJ ShipBuilding and Foodnamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HJ ShipBuilding and Foodnamoo
The main advantage of trading using opposite HJ ShipBuilding and Foodnamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HJ ShipBuilding position performs unexpectedly, Foodnamoo 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 Foodnamoo will offset losses from the drop in Foodnamoo's long position.| HJ ShipBuilding vs. Cube Entertainment | HJ ShipBuilding vs. Pan Entertainment Co | HJ ShipBuilding vs. SM Entertainment Co | HJ ShipBuilding vs. JYP Entertainment Corp |
| Foodnamoo vs. Green Cross Medical | Foodnamoo vs. BooKook Steel Co | Foodnamoo vs. Korean Reinsurance Co | Foodnamoo vs. Jeju Bank |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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