Correlation Between FoodNamoo and Handok Clean
Can any of the company-specific risk be diversified away by investing in both FoodNamoo and Handok Clean 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 FoodNamoo and Handok Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FoodNamoo and Handok Clean Tech, you can compare the effects of market volatilities on FoodNamoo and Handok Clean 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 FoodNamoo with a short position of Handok Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of FoodNamoo and Handok Clean.
Diversification Opportunities for FoodNamoo and Handok Clean
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between FoodNamoo and Handok is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding FoodNamoo and Handok Clean Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handok Clean Tech and FoodNamoo 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 FoodNamoo are associated (or correlated) with Handok Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handok Clean Tech has no effect on the direction of FoodNamoo i.e., FoodNamoo and Handok Clean go up and down completely randomly.
Pair Corralation between FoodNamoo and Handok Clean
Assuming the 90 days trading horizon FoodNamoo is expected to under-perform the Handok Clean. But the stock apears to be less risky and, when comparing its historical volatility, FoodNamoo is 1.18 times less risky than Handok Clean. The stock trades about -0.33 of its potential returns per unit of risk. The Handok Clean Tech is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 630,000 in Handok Clean Tech on November 5, 2024 and sell it today you would lose (6,000) from holding Handok Clean Tech or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FoodNamoo vs. Handok Clean Tech
Performance |
| Timeline |
| FoodNamoo |
| Handok Clean Tech |
FoodNamoo and Handok Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FoodNamoo and Handok Clean
The main advantage of trading using opposite FoodNamoo and Handok Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FoodNamoo position performs unexpectedly, Handok Clean 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 Handok Clean will offset losses from the drop in Handok Clean's long position.| FoodNamoo vs. Maeil Dairies Co | FoodNamoo vs. HYUNDAI FEED | FoodNamoo vs. Neo Cremar Co | FoodNamoo vs. Dongwoo Farm To |
| Handok Clean vs. SCI Information Service | Handok Clean vs. Daewoo Engineering Construction | Handok Clean vs. Daou Data Corp | Handok Clean vs. Hyundai Engineering Construction |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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