Correlation Between Humasis and Seegene
Can any of the company-specific risk be diversified away by investing in both Humasis and Seegene 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 Seegene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and Seegene, you can compare the effects of market volatilities on Humasis and Seegene 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 Seegene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis and Seegene.
Diversification Opportunities for Humasis and Seegene
Poor diversification
The 3 months correlation between Humasis and Seegene is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and Seegene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seegene 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 Seegene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seegene has no effect on the direction of Humasis i.e., Humasis and Seegene go up and down completely randomly.
Pair Corralation between Humasis and Seegene
Assuming the 90 days trading horizon Humasis Co is expected to generate 3.99 times more return on investment than Seegene. However, Humasis is 3.99 times more volatile than Seegene. It trades about 0.12 of its potential returns per unit of risk. Seegene is currently generating about -0.01 per unit of risk. If you would invest 152,200 in Humasis Co on August 25, 2024 and sell it today you would earn a total of 28,800 from holding Humasis Co or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humasis Co vs. Seegene
Performance |
| Timeline |
| Humasis |
| Seegene |
Humasis and Seegene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis and Seegene
The main advantage of trading using opposite Humasis and Seegene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis position performs unexpectedly, Seegene 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 Seegene will offset losses from the drop in Seegene's long position.| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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