Correlation Between Pum Tech and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Pum Tech and Hankukpackage 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 Pum Tech and Hankukpackage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pum Tech Korea Co and Hankukpackage Co, you can compare the effects of market volatilities on Pum Tech and Hankukpackage 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 Pum Tech with a short position of Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pum Tech and Hankukpackage.
Diversification Opportunities for Pum Tech and Hankukpackage
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pum and Hankukpackage is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pum Tech Korea Co and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage and Pum 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 Pum Tech Korea Co are associated (or correlated) with Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Pum Tech i.e., Pum Tech and Hankukpackage go up and down completely randomly.
Pair Corralation between Pum Tech and Hankukpackage
Assuming the 90 days trading horizon Pum Tech Korea Co is expected to generate 1.29 times more return on investment than Hankukpackage. However, Pum Tech is 1.29 times more volatile than Hankukpackage Co. It trades about 0.3 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.09 per unit of risk. If you would invest 4,150,000 in Pum Tech Korea Co on October 15, 2024 and sell it today you would earn a total of 600,000 from holding Pum Tech Korea Co or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pum Tech Korea Co vs. Hankukpackage Co
Performance |
| Timeline |
| Pum Tech Korea |
| Hankukpackage |
Pum Tech and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pum Tech and Hankukpackage
The main advantage of trading using opposite Pum Tech and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pum Tech position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's long position.| Pum Tech vs. Kbi Metal Co | Pum Tech vs. Ssangyong Information Communication | Pum Tech vs. Youngsin Metal Industrial | Pum Tech vs. Daiyang Metal Co |
| Hankukpackage vs. Seoul Electronics Telecom | Hankukpackage vs. Dongil Metal Co | Hankukpackage vs. Tuksu Engineering ConstructionLtd | Hankukpackage vs. Seoam Machinery Industry |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |