Correlation Between Handok Clean and ABOV Semiconductor
Can any of the company-specific risk be diversified away by investing in both Handok Clean and ABOV Semiconductor 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 Handok Clean and ABOV Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Handok Clean Tech and ABOV Semiconductor Co, you can compare the effects of market volatilities on Handok Clean and ABOV Semiconductor 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 Handok Clean with a short position of ABOV Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handok Clean and ABOV Semiconductor.
Diversification Opportunities for Handok Clean and ABOV Semiconductor
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Handok and ABOV is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Handok Clean Tech and ABOV Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABOV Semiconductor and Handok Clean 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 Handok Clean Tech are associated (or correlated) with ABOV Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABOV Semiconductor has no effect on the direction of Handok Clean i.e., Handok Clean and ABOV Semiconductor go up and down completely randomly.
Pair Corralation between Handok Clean and ABOV Semiconductor
Assuming the 90 days trading horizon Handok Clean Tech is expected to generate 0.44 times more return on investment than ABOV Semiconductor. However, Handok Clean Tech is 2.26 times less risky than ABOV Semiconductor. It trades about 0.46 of its potential returns per unit of risk. ABOV Semiconductor Co is currently generating about 0.18 per unit of risk. If you would invest 585,755 in Handok Clean Tech on October 15, 2024 and sell it today you would earn a total of 61,245 from holding Handok Clean Tech or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Handok Clean Tech vs. ABOV Semiconductor Co
Performance |
| Timeline |
| Handok Clean Tech |
| ABOV Semiconductor |
Handok Clean and ABOV Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handok Clean and ABOV Semiconductor
The main advantage of trading using opposite Handok Clean and ABOV Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handok Clean position performs unexpectedly, ABOV Semiconductor 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 ABOV Semiconductor will offset losses from the drop in ABOV Semiconductor's long position.| Handok Clean vs. Hanjoo Light Metal | Handok Clean vs. Kbi Metal Co | Handok Clean vs. Daiyang Metal Co | Handok Clean vs. SungMoon Electronics Co |
| ABOV Semiconductor vs. Miwon Chemicals Co | ABOV Semiconductor vs. Kukdo Chemical Co | ABOV Semiconductor vs. Kyung In Synthetic Corp | ABOV Semiconductor vs. SK Chemicals Co |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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