Correlation Between Osteonic and Humasis
Can any of the company-specific risk be diversified away by investing in both Osteonic and Humasis 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 Osteonic and Humasis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osteonic Co and Humasis Co, you can compare the effects of market volatilities on Osteonic and Humasis 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 Osteonic with a short position of Humasis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osteonic and Humasis.
Diversification Opportunities for Osteonic and Humasis
Very good diversification
The 3 months correlation between Osteonic and Humasis is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Osteonic Co and Humasis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humasis and Osteonic 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 Osteonic Co are associated (or correlated) with Humasis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humasis has no effect on the direction of Osteonic i.e., Osteonic and Humasis go up and down completely randomly.
Pair Corralation between Osteonic and Humasis
Assuming the 90 days trading horizon Osteonic Co is expected to under-perform the Humasis. But the stock apears to be less risky and, when comparing its historical volatility, Osteonic Co is 2.66 times less risky than Humasis. The stock trades about -0.17 of its potential returns per unit of risk. The Humasis Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osteonic Co vs. Humasis Co
Performance |
| Timeline |
| Osteonic |
| Humasis |
Osteonic and Humasis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osteonic and Humasis
The main advantage of trading using opposite Osteonic and Humasis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osteonic position performs unexpectedly, Humasis 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 Humasis will offset losses from the drop in Humasis' long position.| Osteonic vs. Seegene | Osteonic vs. LabGenomics Co | Osteonic vs. Humasis Co | Osteonic vs. Busan Industrial Co |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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