Correlation Between Finebesteel and Han Kook
Can any of the company-specific risk be diversified away by investing in both Finebesteel and Han Kook 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 Finebesteel and Han Kook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finebesteel and Han Kook Steel, you can compare the effects of market volatilities on Finebesteel and Han Kook 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 Finebesteel with a short position of Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finebesteel and Han Kook.
Diversification Opportunities for Finebesteel and Han Kook
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Finebesteel and Han is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Finebesteel and Han Kook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook Steel and Finebesteel 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 Finebesteel are associated (or correlated) with Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Steel has no effect on the direction of Finebesteel i.e., Finebesteel and Han Kook go up and down completely randomly.
Pair Corralation between Finebesteel and Han Kook
Assuming the 90 days trading horizon Finebesteel is expected to generate 1.72 times more return on investment than Han Kook. However, Finebesteel is 1.72 times more volatile than Han Kook Steel. It trades about 0.12 of its potential returns per unit of risk. Han Kook Steel is currently generating about -0.17 per unit of risk. If you would invest 100,200 in Finebesteel on October 23, 2024 and sell it today you would earn a total of 5,200 from holding Finebesteel or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finebesteel vs. Han Kook Steel
Performance |
| Timeline |
| Finebesteel |
| Han Kook Steel |
Finebesteel and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finebesteel and Han Kook
The main advantage of trading using opposite Finebesteel and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finebesteel position performs unexpectedly, Han Kook 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 Han Kook will offset losses from the drop in Han Kook's long position.| Finebesteel vs. Seoul Electronics Telecom | Finebesteel vs. Nable Communications | Finebesteel vs. PJ Electronics Co | Finebesteel vs. DAEDUCK ELECTRONICS CoLtd |
| Han Kook vs. Samick Musical Instruments | Han Kook vs. Genie Music | Han Kook vs. Histeel | Han Kook vs. Hyundai BNG Steel |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |