Correlation Between Humasis and HLB Power
Can any of the company-specific risk be diversified away by investing in both Humasis and HLB Power 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 Humasis and HLB Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and HLB Power Co, you can compare the effects of market volatilities on Humasis and HLB Power 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 Humasis with a short position of HLB Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis and HLB Power.
Diversification Opportunities for Humasis and HLB Power
Very good diversification
The 3 months correlation between Humasis and HLB is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and HLB Power Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HLB Power and Humasis 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 Humasis Co are associated (or correlated) with HLB Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HLB Power has no effect on the direction of Humasis i.e., Humasis and HLB Power go up and down completely randomly.
Pair Corralation between Humasis and HLB Power
Assuming the 90 days trading horizon Humasis Co is expected to generate 1.51 times more return on investment than HLB Power. However, Humasis is 1.51 times more volatile than HLB Power Co. It trades about 0.12 of its potential returns per unit of risk. HLB Power Co is currently generating about -0.29 per unit of risk. If you would invest 161,800 in Humasis Co on September 13, 2024 and sell it today you would earn a total of 23,300 from holding Humasis Co or generate 14.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Humasis Co vs. HLB Power Co
Performance |
| Timeline |
| Humasis |
| HLB Power |
Humasis and HLB Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis and HLB Power
The main advantage of trading using opposite Humasis and HLB Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis position performs unexpectedly, HLB Power 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 HLB Power will offset losses from the drop in HLB Power's long position.| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
| HLB Power vs. DB Insurance Co | HLB Power vs. Koryo Credit Information | HLB Power vs. Coloray International Investment | HLB Power vs. Dongbu Insurance Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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