Correlation Between Humasis Co and Ray
Can any of the company-specific risk be diversified away by investing in both Humasis Co and Ray 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 Co and Ray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and Ray Co, you can compare the effects of market volatilities on Humasis Co and Ray 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 Co with a short position of Ray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis Co and Ray.
Diversification Opportunities for Humasis Co and Ray
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humasis and Ray is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and Ray Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ray Co and Humasis Co 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 Ray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ray Co has no effect on the direction of Humasis Co i.e., Humasis Co and Ray go up and down completely randomly.
Pair Corralation between Humasis Co and Ray
Assuming the 90 days trading horizon Humasis Co is expected to under-perform the Ray. But the stock apears to be less risky and, when comparing its historical volatility, Humasis Co is 1.07 times less risky than Ray. The stock trades about -0.02 of its potential returns per unit of risk. The Ray Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 602,000 in Ray Co on November 27, 2024 and sell it today you would earn a total of 268,000 from holding Ray Co or generate 44.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humasis Co vs. Ray Co
Performance |
| Timeline |
| Humasis Co |
| Ray Co |
Humasis Co and Ray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis Co and Ray
The main advantage of trading using opposite Humasis Co and Ray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis Co position performs unexpectedly, Ray 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 Ray will offset losses from the drop in Ray's long position.| Humasis Co vs. LabGenomics Co | Humasis Co vs. Seegene | Humasis Co vs. Access Bio | Humasis Co vs. Woori Technology Investment |
| Ray vs. LG Household Healthcare | Ray vs. Samick Musical Instruments | Ray vs. NICE Information Service | Ray vs. Koryo Credit Information |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |