Correlation Between PH Tech and HYUNDAI BIOLAND
Can any of the company-specific risk be diversified away by investing in both PH Tech and HYUNDAI BIOLAND 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 HYUNDAI BIOLAND 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 HYUNDAI BIOLAND CoLtd, you can compare the effects of market volatilities on PH Tech and HYUNDAI BIOLAND 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 HYUNDAI BIOLAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and HYUNDAI BIOLAND.
Diversification Opportunities for PH Tech and HYUNDAI BIOLAND
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 239890 and HYUNDAI is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and HYUNDAI BIOLAND CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYUNDAI BIOLAND CoLtd 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 HYUNDAI BIOLAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYUNDAI BIOLAND CoLtd has no effect on the direction of PH Tech i.e., PH Tech and HYUNDAI BIOLAND go up and down completely randomly.
Pair Corralation between PH Tech and HYUNDAI BIOLAND
Assuming the 90 days trading horizon PH Tech Co is expected to generate 1.83 times more return on investment than HYUNDAI BIOLAND. However, PH Tech is 1.83 times more volatile than HYUNDAI BIOLAND CoLtd. It trades about 0.04 of its potential returns per unit of risk. HYUNDAI BIOLAND CoLtd is currently generating about -0.11 per unit of risk. If you would invest 685,000 in PH Tech Co on September 12, 2024 and sell it today you would earn a total of 16,000 from holding PH Tech Co or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. HYUNDAI BIOLAND CoLtd
Performance |
| Timeline |
| PH Tech |
| HYUNDAI BIOLAND CoLtd |
PH Tech and HYUNDAI BIOLAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and HYUNDAI BIOLAND
The main advantage of trading using opposite PH Tech and HYUNDAI BIOLAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, HYUNDAI BIOLAND 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 HYUNDAI BIOLAND will offset losses from the drop in HYUNDAI BIOLAND's long position.| PH Tech vs. LG Chem | PH Tech vs. Chunbo Co | PH Tech vs. DukSan Neolux CoLtd | PH Tech vs. Hyosung Chemical Corp |
| HYUNDAI BIOLAND vs. Korea New Network | HYUNDAI BIOLAND vs. ICD Co | HYUNDAI BIOLAND vs. DYPNF CoLtd | HYUNDAI BIOLAND vs. Solution Advanced Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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