Correlation Between PH Tech and Hwangkum Steel
Can any of the company-specific risk be diversified away by investing in both PH Tech and Hwangkum Steel 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 PH Tech and Hwangkum Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and Hwangkum Steel Technology, you can compare the effects of market volatilities on PH Tech and Hwangkum Steel 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 PH Tech with a short position of Hwangkum Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Hwangkum Steel.
Diversification Opportunities for PH Tech and Hwangkum Steel
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 239890 and Hwangkum is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and Hwangkum Steel Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwangkum Steel Technology and PH Tech 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 PH Tech Co are associated (or correlated) with Hwangkum Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwangkum Steel Technology has no effect on the direction of PH Tech i.e., PH Tech and Hwangkum Steel go up and down completely randomly.
Pair Corralation between PH Tech and Hwangkum Steel
Assuming the 90 days trading horizon PH Tech Co is expected to generate 3.13 times more return on investment than Hwangkum Steel. However, PH Tech is 3.13 times more volatile than Hwangkum Steel Technology. It trades about -0.03 of its potential returns per unit of risk. Hwangkum Steel Technology is currently generating about -0.14 per unit of risk. If you would invest 928,000 in PH Tech Co on August 28, 2024 and sell it today you would lose (93,000) from holding PH Tech Co or give up 10.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Hwangkum Steel Technology
Performance |
| Timeline |
| PH Tech |
| Hwangkum Steel Technology |
PH Tech and Hwangkum Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Hwangkum Steel
The main advantage of trading using opposite PH Tech and Hwangkum Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, Hwangkum Steel 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 Hwangkum Steel will offset losses from the drop in Hwangkum Steel's long position.| PH Tech vs. SBI Investment KOREA | PH Tech vs. Sam Yang Foods | PH Tech vs. Hyundai Green Food | PH Tech vs. E Investment Development |
| Hwangkum Steel vs. AptaBio Therapeutics | Hwangkum Steel vs. Daewoo SBI SPAC | Hwangkum Steel vs. Dream Security co | Hwangkum Steel vs. Microfriend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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