Correlation Between Hanjinkal and HuMC
Can any of the company-specific risk be diversified away by investing in both Hanjinkal and HuMC 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 Hanjinkal and HuMC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjinkal and HuMC Co, you can compare the effects of market volatilities on Hanjinkal and HuMC 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 Hanjinkal with a short position of HuMC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjinkal and HuMC.
Diversification Opportunities for Hanjinkal and HuMC
Very good diversification
The 3 months correlation between Hanjinkal and HuMC is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hanjinkal and HuMC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HuMC and Hanjinkal 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 Hanjinkal are associated (or correlated) with HuMC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HuMC has no effect on the direction of Hanjinkal i.e., Hanjinkal and HuMC go up and down completely randomly.
Pair Corralation between Hanjinkal and HuMC
Assuming the 90 days trading horizon Hanjinkal is expected to under-perform the HuMC. In addition to that, Hanjinkal is 2.74 times more volatile than HuMC Co. It trades about -0.08 of its total potential returns per unit of risk. HuMC Co is currently generating about -0.15 per unit of volatility. If you would invest 102,000 in HuMC Co on September 1, 2024 and sell it today you would lose (2,800) from holding HuMC Co or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hanjinkal vs. HuMC Co
Performance |
| Timeline |
| Hanjinkal |
| HuMC |
Hanjinkal and HuMC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjinkal and HuMC
The main advantage of trading using opposite Hanjinkal and HuMC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjinkal position performs unexpectedly, HuMC 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 HuMC will offset losses from the drop in HuMC's long position.| Hanjinkal vs. Hanjoo Light Metal | Hanjinkal vs. Polaris Office Corp | Hanjinkal vs. Daiyang Metal Co | Hanjinkal vs. Choil Aluminum |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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