Correlation Between ABOV Semiconductor and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor and Hankukpackage 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 ABOV Semiconductor and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and Hankukpackage Co, you can compare the effects of market volatilities on ABOV Semiconductor and Hankukpackage 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 ABOV Semiconductor with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and Hankukpackage.
Diversification Opportunities for ABOV Semiconductor and Hankukpackage
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABOV and Hankukpackage is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and ABOV Semiconductor 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 ABOV Semiconductor Co are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of ABOV Semiconductor i.e., ABOV Semiconductor and Hankukpackage go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and Hankukpackage
Assuming the 90 days trading horizon ABOV Semiconductor Co is expected to under-perform the Hankukpackage. In addition to that, ABOV Semiconductor is 2.08 times more volatile than Hankukpackage Co. It trades about -0.25 of its total potential returns per unit of risk. Hankukpackage Co is currently generating about -0.25 per unit of volatility. If you would invest 199,400 in Hankukpackage Co on August 28, 2024 and sell it today you would lose (14,000) from holding Hankukpackage Co or give up 7.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. Hankukpackage Co
Performance |
| Timeline |
| ABOV Semiconductor |
| Hankukpackage |
ABOV Semiconductor and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and Hankukpackage
The main advantage of trading using opposite ABOV Semiconductor and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| ABOV Semiconductor vs. Korea Real Estate | ABOV Semiconductor vs. Korea Ratings Co | ABOV Semiconductor vs. IQuest Co | ABOV Semiconductor vs. Wonbang Tech Co |
| Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind | Hankukpackage vs. Mirae Asset Daewoo | Hankukpackage vs. UNISEM Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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