Correlation Between Hyosung Advanced and Insung Information
Can any of the company-specific risk be diversified away by investing in both Hyosung Advanced and Insung Information 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 Advanced and Insung Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyosung Advanced Materials and Insung Information Co, you can compare the effects of market volatilities on Hyosung Advanced and Insung Information 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 Advanced with a short position of Insung Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Advanced and Insung Information.
Diversification Opportunities for Hyosung Advanced and Insung Information
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyosung and Insung is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Advanced Materials and Insung Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insung Information and Hyosung Advanced 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 Advanced Materials are associated (or correlated) with Insung Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insung Information has no effect on the direction of Hyosung Advanced i.e., Hyosung Advanced and Insung Information go up and down completely randomly.
Pair Corralation between Hyosung Advanced and Insung Information
Assuming the 90 days trading horizon Hyosung Advanced is expected to generate 2.23 times less return on investment than Insung Information. But when comparing it to its historical volatility, Hyosung Advanced Materials is 1.16 times less risky than Insung Information. It trades about 0.07 of its potential returns per unit of risk. Insung Information Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 178,700 in Insung Information Co on October 29, 2024 and sell it today you would earn a total of 9,600 from holding Insung Information Co or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyosung Advanced Materials vs. Insung Information Co
Performance |
| Timeline |
| Hyosung Advanced Mat |
| Insung Information |
Hyosung Advanced and Insung Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyosung Advanced and Insung Information
The main advantage of trading using opposite Hyosung Advanced and Insung Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Advanced position performs unexpectedly, Insung Information 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 Insung Information will offset losses from the drop in Insung Information's long position.| Hyosung Advanced vs. Eagon Industrial Co | Hyosung Advanced vs. Nable Communications | Hyosung Advanced vs. Pyung Hwa Industrial | Hyosung Advanced vs. LEENO Industrial |
| Insung Information vs. Namhae Chemical | Insung Information vs. N2Tech Co | Insung Information vs. Wireless Power Amplifier | Insung Information vs. iNtRON Biotechnology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |