Correlation Between Handok Clean and Hurum
Can any of the company-specific risk be diversified away by investing in both Handok Clean and Hurum 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 Hurum 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 Hurum Co, you can compare the effects of market volatilities on Handok Clean and Hurum 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 Hurum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Handok Clean and Hurum.
Diversification Opportunities for Handok Clean and Hurum
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Handok and Hurum is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Handok Clean Tech and Hurum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hurum 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 Hurum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hurum has no effect on the direction of Handok Clean i.e., Handok Clean and Hurum go up and down completely randomly.
Pair Corralation between Handok Clean and Hurum
Assuming the 90 days trading horizon Handok Clean Tech is expected to generate 0.67 times more return on investment than Hurum. However, Handok Clean Tech is 1.49 times less risky than Hurum. It trades about -0.01 of its potential returns per unit of risk. Hurum Co is currently generating about -0.03 per unit of risk. If you would invest 729,036 in Handok Clean Tech on October 12, 2024 and sell it today you would lose (82,036) from holding Handok Clean Tech or give up 11.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Handok Clean Tech vs. Hurum Co
Performance |
| Timeline |
| Handok Clean Tech |
| Hurum |
Handok Clean and Hurum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Handok Clean and Hurum
The main advantage of trading using opposite Handok Clean and Hurum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Handok Clean position performs unexpectedly, Hurum 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 Hurum will offset losses from the drop in Hurum's long position.| Handok Clean vs. Hana Materials | Handok Clean vs. National Plastic Co | Handok Clean vs. LG Display Co | Handok Clean vs. Sangsin Energy Display |
| Hurum vs. Handok Clean Tech | Hurum vs. TOPMATERIAL LTD | Hurum vs. Polaris Office Corp | Hurum vs. RF Materials 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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