Correlation Between Hwashin Precision and RFTech
Can any of the company-specific risk be diversified away by investing in both Hwashin Precision and RFTech 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 Hwashin Precision and RFTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwashin Precision Engineering and RFTech Co, you can compare the effects of market volatilities on Hwashin Precision and RFTech 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 Hwashin Precision with a short position of RFTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwashin Precision and RFTech.
Diversification Opportunities for Hwashin Precision and RFTech
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hwashin and RFTech is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hwashin Precision Engineering and RFTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RFTech and Hwashin Precision 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 Hwashin Precision Engineering are associated (or correlated) with RFTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RFTech has no effect on the direction of Hwashin Precision i.e., Hwashin Precision and RFTech go up and down completely randomly.
Pair Corralation between Hwashin Precision and RFTech
Assuming the 90 days trading horizon Hwashin Precision Engineering is expected to generate 1.13 times more return on investment than RFTech. However, Hwashin Precision is 1.13 times more volatile than RFTech Co. It trades about 0.01 of its potential returns per unit of risk. RFTech Co is currently generating about -0.04 per unit of risk. If you would invest 147,857 in Hwashin Precision Engineering on December 12, 2024 and sell it today you would lose (7,257) from holding Hwashin Precision Engineering or give up 4.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwashin Precision Engineering vs. RFTech Co
Performance |
| Timeline |
| Hwashin Precision |
| RFTech |
Hwashin Precision and RFTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwashin Precision and RFTech
The main advantage of trading using opposite Hwashin Precision and RFTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwashin Precision position performs unexpectedly, RFTech 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 RFTech will offset losses from the drop in RFTech's long position.| Hwashin Precision vs. Ecocab Co | ||
| Hwashin Precision vs. Daedong Gear Co | ||
| Hwashin Precision vs. YOUNGHWA TECH Co | ||
| Hwashin Precision vs. Daedong Metals Co |
| RFTech vs. Digital Multimedia Technology | ||
| RFTech vs. SV Investment | ||
| RFTech vs. Atinum Investment Co | ||
| RFTech vs. MediaZen |
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.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |