Correlation Between Hugel and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Hugel and Iljin Display 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 Hugel and Iljin Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugel Inc and Iljin Display, you can compare the effects of market volatilities on Hugel and Iljin Display 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 Hugel with a short position of Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugel and Iljin Display.
Diversification Opportunities for Hugel and Iljin Display
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hugel and Iljin is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hugel Inc and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display and Hugel 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 Hugel Inc are associated (or correlated) with Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Hugel i.e., Hugel and Iljin Display go up and down completely randomly.
Pair Corralation between Hugel and Iljin Display
Assuming the 90 days trading horizon Hugel Inc is expected to under-perform the Iljin Display. In addition to that, Hugel is 3.7 times more volatile than Iljin Display. It trades about -0.09 of its total potential returns per unit of risk. Iljin Display is currently generating about -0.23 per unit of volatility. If you would invest 90,000 in Iljin Display on September 5, 2024 and sell it today you would lose (5,200) from holding Iljin Display or give up 5.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hugel Inc vs. Iljin Display
Performance |
| Timeline |
| Hugel Inc |
| Iljin Display |
Hugel and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hugel and Iljin Display
The main advantage of trading using opposite Hugel and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugel position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Hugel vs. Iljin Display | Hugel vs. Grand Korea Leisure | Hugel vs. Shinsung Delta Tech | Hugel vs. Hanjin Transportation Co |
| Iljin Display vs. Moonbae Steel | Iljin Display vs. Finebesteel | Iljin Display vs. Sung Bo Chemicals | Iljin Display vs. Jeil Steel Mfg |
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 Stocks Directory module to find actively traded stocks across global markets.
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