Correlation Between Humasis and ENERGYMACHINERY KOREA
Can any of the company-specific risk be diversified away by investing in both Humasis and ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and ENERGYMACHINERY KOREA CoLtd, you can compare the effects of market volatilities on Humasis and ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis and ENERGYMACHINERY KOREA.
Diversification Opportunities for Humasis and ENERGYMACHINERY KOREA
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humasis and ENERGYMACHINERY is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and ENERGYMACHINERY KOREA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENERGYMACHINERY KOREA has no effect on the direction of Humasis i.e., Humasis and ENERGYMACHINERY KOREA go up and down completely randomly.
Pair Corralation between Humasis and ENERGYMACHINERY KOREA
Assuming the 90 days trading horizon Humasis Co is expected to generate 2.42 times more return on investment than ENERGYMACHINERY KOREA. However, Humasis is 2.42 times more volatile than ENERGYMACHINERY KOREA CoLtd. It trades about 0.12 of its potential returns per unit of risk. ENERGYMACHINERY KOREA CoLtd is currently generating about -0.24 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 | 100.0% |
| Values | Daily Returns |
Humasis Co vs. ENERGYMACHINERY KOREA CoLtd
Performance |
| Timeline |
| Humasis |
| ENERGYMACHINERY KOREA |
Humasis and ENERGYMACHINERY KOREA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis and ENERGYMACHINERY KOREA
The main advantage of trading using opposite Humasis and ENERGYMACHINERY KOREA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis position performs unexpectedly, ENERGYMACHINERY KOREA 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 ENERGYMACHINERY KOREA will offset losses from the drop in ENERGYMACHINERY KOREA's long position.| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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