Correlation Between Hanjoo Light and Tuksu Engineering
Can any of the company-specific risk be diversified away by investing in both Hanjoo Light and Tuksu Engineering 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 Hanjoo Light and Tuksu Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjoo Light Metal and Tuksu Engineering ConstructionLtd, you can compare the effects of market volatilities on Hanjoo Light and Tuksu Engineering 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 Hanjoo Light with a short position of Tuksu Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjoo Light and Tuksu Engineering.
Diversification Opportunities for Hanjoo Light and Tuksu Engineering
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanjoo and Tuksu is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hanjoo Light Metal and Tuksu Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuksu Engineering and Hanjoo Light 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 Hanjoo Light Metal are associated (or correlated) with Tuksu Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuksu Engineering has no effect on the direction of Hanjoo Light i.e., Hanjoo Light and Tuksu Engineering go up and down completely randomly.
Pair Corralation between Hanjoo Light and Tuksu Engineering
Assuming the 90 days trading horizon Hanjoo Light Metal is expected to under-perform the Tuksu Engineering. In addition to that, Hanjoo Light is 1.1 times more volatile than Tuksu Engineering ConstructionLtd. It trades about -0.04 of its total potential returns per unit of risk. Tuksu Engineering ConstructionLtd is currently generating about -0.02 per unit of volatility. If you would invest 670,000 in Tuksu Engineering ConstructionLtd on October 18, 2024 and sell it today you would lose (7,000) from holding Tuksu Engineering ConstructionLtd or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjoo Light Metal vs. Tuksu Engineering Construction
Performance |
| Timeline |
| Hanjoo Light Metal |
| Tuksu Engineering |
Hanjoo Light and Tuksu Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjoo Light and Tuksu Engineering
The main advantage of trading using opposite Hanjoo Light and Tuksu Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjoo Light position performs unexpectedly, Tuksu Engineering 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 Tuksu Engineering will offset losses from the drop in Tuksu Engineering's long position.| Hanjoo Light vs. Daishin Information Communications | Hanjoo Light vs. Lotte Non Life Insurance | Hanjoo Light vs. Sangsin Energy Display | Hanjoo Light vs. Display Tech Co |
| Tuksu Engineering vs. Hyundai Industrial Co | Tuksu Engineering vs. Industrial Bank | Tuksu Engineering vs. Hanjoo Light Metal | Tuksu Engineering vs. Daejung Chemicals Metals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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