Correlation Between Humasis and Dongyang
Can any of the company-specific risk be diversified away by investing in both Humasis and Dongyang 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 Dongyang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and Dongyang EP, you can compare the effects of market volatilities on Humasis and Dongyang 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 Dongyang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis and Dongyang.
Diversification Opportunities for Humasis and Dongyang
Very good diversification
The 3 months correlation between Humasis and Dongyang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and Dongyang EP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongyang EP 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 Dongyang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongyang EP has no effect on the direction of Humasis i.e., Humasis and Dongyang go up and down completely randomly.
Pair Corralation between Humasis and Dongyang
Assuming the 90 days trading horizon Humasis Co is expected to generate 3.41 times more return on investment than Dongyang. However, Humasis is 3.41 times more volatile than Dongyang EP. It trades about 0.11 of its potential returns per unit of risk. Dongyang EP is currently generating about 0.03 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 21,900 from holding Humasis Co or generate 13.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humasis Co vs. Dongyang EP
Performance |
| Timeline |
| Humasis |
| Dongyang EP |
Humasis and Dongyang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis and Dongyang
The main advantage of trading using opposite Humasis and Dongyang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis position performs unexpectedly, Dongyang 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 Dongyang will offset losses from the drop in Dongyang's long position.| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
| Dongyang vs. Korea New Network | Dongyang vs. Solution Advanced Technology | Dongyang vs. Busan Industrial Co | Dongyang vs. Busan Ind |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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