Correlation Between Amogreentech and Hanjin Transportation
Can any of the company-specific risk be diversified away by investing in both Amogreentech and Hanjin Transportation 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 Amogreentech and Hanjin Transportation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amogreentech Co and Hanjin Transportation Co, you can compare the effects of market volatilities on Amogreentech and Hanjin Transportation 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 Amogreentech with a short position of Hanjin Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech and Hanjin Transportation.
Diversification Opportunities for Amogreentech and Hanjin Transportation
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amogreentech and Hanjin is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech Co and Hanjin Transportation Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjin Transportation and Amogreentech 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 Amogreentech Co are associated (or correlated) with Hanjin Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjin Transportation has no effect on the direction of Amogreentech i.e., Amogreentech and Hanjin Transportation go up and down completely randomly.
Pair Corralation between Amogreentech and Hanjin Transportation
Assuming the 90 days trading horizon Amogreentech Co is expected to generate 2.89 times more return on investment than Hanjin Transportation. However, Amogreentech is 2.89 times more volatile than Hanjin Transportation Co. It trades about 0.19 of its potential returns per unit of risk. Hanjin Transportation Co is currently generating about 0.51 per unit of risk. If you would invest 567,000 in Amogreentech Co on October 12, 2024 and sell it today you would earn a total of 43,000 from holding Amogreentech Co or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amogreentech Co vs. Hanjin Transportation Co
Performance |
| Timeline |
| Amogreentech |
| Hanjin Transportation |
Amogreentech and Hanjin Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech and Hanjin Transportation
The main advantage of trading using opposite Amogreentech and Hanjin Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech position performs unexpectedly, Hanjin Transportation 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 Hanjin Transportation will offset losses from the drop in Hanjin Transportation's long position.| Amogreentech vs. Ecopro BM Co | Amogreentech vs. Sangsin Energy Display | Amogreentech vs. Bosung Power Technology | Amogreentech vs. Busan Industrial Co |
| Hanjin Transportation vs. Amogreentech Co | Hanjin Transportation vs. FNSTech Co | Hanjin Transportation vs. Jeju Air Co | Hanjin Transportation vs. Jin Air 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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