Correlation Between Hyosung Heavy and INtRON Biotechnology
Can any of the company-specific risk be diversified away by investing in both Hyosung Heavy and INtRON Biotechnology 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 Hyosung Heavy and INtRON Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyosung Heavy Industries and iNtRON Biotechnology, you can compare the effects of market volatilities on Hyosung Heavy and INtRON Biotechnology 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 Hyosung Heavy with a short position of INtRON Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Heavy and INtRON Biotechnology.
Diversification Opportunities for Hyosung Heavy and INtRON Biotechnology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyosung and INtRON is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Heavy Industries and iNtRON Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iNtRON Biotechnology and Hyosung Heavy 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 Hyosung Heavy Industries are associated (or correlated) with INtRON Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iNtRON Biotechnology has no effect on the direction of Hyosung Heavy i.e., Hyosung Heavy and INtRON Biotechnology go up and down completely randomly.
Pair Corralation between Hyosung Heavy and INtRON Biotechnology
Assuming the 90 days trading horizon Hyosung Heavy Industries is expected to generate 1.12 times more return on investment than INtRON Biotechnology. However, Hyosung Heavy is 1.12 times more volatile than iNtRON Biotechnology. It trades about 0.11 of its potential returns per unit of risk. iNtRON Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 6,735,221 in Hyosung Heavy Industries on October 9, 2024 and sell it today you would earn a total of 33,964,779 from holding Hyosung Heavy Industries or generate 504.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyosung Heavy Industries vs. iNtRON Biotechnology
Performance |
| Timeline |
| Hyosung Heavy Industries |
| iNtRON Biotechnology |
Hyosung Heavy and INtRON Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyosung Heavy and INtRON Biotechnology
The main advantage of trading using opposite Hyosung Heavy and INtRON Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Heavy position performs unexpectedly, INtRON Biotechnology 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 INtRON Biotechnology will offset losses from the drop in INtRON Biotechnology's long position.| Hyosung Heavy vs. LG Energy Solution | Hyosung Heavy vs. Doosan Heavy Ind | Hyosung Heavy vs. Aprogen KIC | Hyosung Heavy vs. Korea Refract |
| INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Busan Industrial Co | INtRON Biotechnology vs. UNISEM 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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