Correlation Between Handok Clean and CU Medical
Can any of the company-specific risk be diversified away by investing in both Handok Clean and CU Medical 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 CU Medical 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 CU Medical Systems, you can compare the effects of market volatilities on Handok Clean and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handok Clean and CU Medical.
Diversification Opportunities for Handok Clean and CU Medical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Handok and 115480 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Handok Clean Tech and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Handok Clean i.e., Handok Clean and CU Medical go up and down completely randomly.
Pair Corralation between Handok Clean and CU Medical
Assuming the 90 days trading horizon Handok Clean Tech is expected to generate 0.61 times more return on investment than CU Medical. However, Handok Clean Tech is 1.64 times less risky than CU Medical. It trades about -0.06 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.07 per unit of risk. If you would invest 794,029 in Handok Clean Tech on September 3, 2024 and sell it today you would lose (159,029) from holding Handok Clean Tech or give up 20.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Handok Clean Tech vs. CU Medical Systems
Performance |
| Timeline |
| Handok Clean Tech |
| CU Medical Systems |
Handok Clean and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handok Clean and CU Medical
The main advantage of trading using opposite Handok Clean and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handok Clean position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.| Handok Clean vs. Busan Industrial Co | Handok Clean vs. UNISEM Co | Handok Clean vs. RPBio Inc | Handok Clean vs. Finebesteel |
| CU Medical vs. AptaBio Therapeutics | CU Medical vs. KT Hitel | CU Medical vs. SillaJen | CU Medical vs. Cytogen |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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