Correlation Between Fine Besteel and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Fine Besteel 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 Fine Besteel and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and Hankukpackage Co, you can compare the effects of market volatilities on Fine Besteel 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 Fine Besteel with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and Hankukpackage.
Diversification Opportunities for Fine Besteel and Hankukpackage
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fine and Hankukpackage is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and Fine Besteel 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 Fine Besteel 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 Fine Besteel i.e., Fine Besteel and Hankukpackage go up and down completely randomly.
Pair Corralation between Fine Besteel and Hankukpackage
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 1.02 times more return on investment than Hankukpackage. However, Fine Besteel is 1.02 times more volatile than Hankukpackage Co. It trades about 0.06 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.03 per unit of risk. If you would invest 104,700 in Fine Besteel Co on October 30, 2024 and sell it today you would earn a total of 4,700 from holding Fine Besteel Co or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. Hankukpackage Co
Performance |
| Timeline |
| Fine Besteel |
| Hankukpackage |
Fine Besteel and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and Hankukpackage
The main advantage of trading using opposite Fine Besteel and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel 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.| Fine Besteel vs. Haitai Confectionery Foods | Fine Besteel vs. Woori Technology | Fine Besteel vs. iNtRON Biotechnology | Fine Besteel vs. Samyang Foods Co |
| Hankukpackage vs. SeAH Besteel Corp | Hankukpackage vs. Hyundai Engineering Plastics | Hankukpackage vs. Daehan Steel | Hankukpackage vs. Daejoo Electronic Materials |
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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