Correlation Between Hanjinkal and Doosan Fuel
Can any of the company-specific risk be diversified away by investing in both Hanjinkal and Doosan Fuel 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 Doosan Fuel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjinkal and Doosan Fuel Cell, you can compare the effects of market volatilities on Hanjinkal and Doosan Fuel 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 Doosan Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjinkal and Doosan Fuel.
Diversification Opportunities for Hanjinkal and Doosan Fuel
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanjinkal and Doosan is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Hanjinkal and Doosan Fuel Cell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doosan Fuel Cell 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 Doosan Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doosan Fuel Cell has no effect on the direction of Hanjinkal i.e., Hanjinkal and Doosan Fuel go up and down completely randomly.
Pair Corralation between Hanjinkal and Doosan Fuel
Assuming the 90 days trading horizon Hanjinkal is expected to under-perform the Doosan Fuel. But the stock apears to be less risky and, when comparing its historical volatility, Hanjinkal is 1.94 times less risky than Doosan Fuel. The stock trades about -0.19 of its potential returns per unit of risk. The Doosan Fuel Cell is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,750,000 in Doosan Fuel Cell on August 29, 2024 and sell it today you would earn a total of 39,000 from holding Doosan Fuel Cell or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjinkal vs. Doosan Fuel Cell
Performance |
| Timeline |
| Hanjinkal |
| Doosan Fuel Cell |
Hanjinkal and Doosan Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjinkal and Doosan Fuel
The main advantage of trading using opposite Hanjinkal and Doosan Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjinkal position performs unexpectedly, Doosan Fuel 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 Doosan Fuel will offset losses from the drop in Doosan Fuel's long position.| Hanjinkal vs. Korean Drug Co | Hanjinkal vs. Shinsegae Information Communication | Hanjinkal vs. CU Medical Systems | Hanjinkal vs. Inzi Display CoLtd |
| Doosan Fuel vs. LS Electric | Doosan Fuel vs. Busan Industrial Co | Doosan Fuel vs. Busan Ind | Doosan Fuel vs. Mirae Asset Daewoo |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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