Correlation Between CU Medical and Hansol Homedeco
Can any of the company-specific risk be diversified away by investing in both CU Medical and Hansol Homedeco 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 CU Medical and Hansol Homedeco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CU Medical Systems and Hansol Homedeco Co, you can compare the effects of market volatilities on CU Medical and Hansol Homedeco 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 CU Medical with a short position of Hansol Homedeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of CU Medical and Hansol Homedeco.
Diversification Opportunities for CU Medical and Hansol Homedeco
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 115480 and Hansol is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CU Medical Systems and Hansol Homedeco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Homedeco and CU Medical 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 CU Medical Systems are associated (or correlated) with Hansol Homedeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Homedeco has no effect on the direction of CU Medical i.e., CU Medical and Hansol Homedeco go up and down completely randomly.
Pair Corralation between CU Medical and Hansol Homedeco
Assuming the 90 days trading horizon CU Medical Systems is expected to under-perform the Hansol Homedeco. In addition to that, CU Medical is 1.36 times more volatile than Hansol Homedeco Co. It trades about -0.06 of its total potential returns per unit of risk. Hansol Homedeco Co is currently generating about -0.06 per unit of volatility. If you would invest 102,500 in Hansol Homedeco Co on September 19, 2024 and sell it today you would lose (36,100) from holding Hansol Homedeco Co or give up 35.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
CU Medical Systems vs. Hansol Homedeco Co
Performance |
| Timeline |
| CU Medical Systems |
| Hansol Homedeco |
CU Medical and Hansol Homedeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CU Medical and Hansol Homedeco
The main advantage of trading using opposite CU Medical and Hansol Homedeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CU Medical position performs unexpectedly, Hansol Homedeco 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 Hansol Homedeco will offset losses from the drop in Hansol Homedeco's long position.| CU Medical vs. Samsung Electronics Co | CU Medical vs. Samsung Electronics Co | CU Medical vs. SK Hynix | CU Medical vs. SK Holdings Co |
| Hansol Homedeco vs. Samsung Electronics Co | Hansol Homedeco vs. Samsung Electronics Co | Hansol Homedeco vs. SK Hynix | Hansol Homedeco vs. POSCO Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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