Correlation Between Hanilcmt and Busan Ind
Can any of the company-specific risk be diversified away by investing in both Hanilcmt and Busan Ind 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 Hanilcmt and Busan Ind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanilcmt Co and Busan Ind, you can compare the effects of market volatilities on Hanilcmt and Busan Ind 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 Hanilcmt with a short position of Busan Ind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanilcmt and Busan Ind.
Diversification Opportunities for Hanilcmt and Busan Ind
Average diversification
The 3 months correlation between Hanilcmt and Busan is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hanilcmt Co and Busan Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Busan Ind and Hanilcmt 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 Hanilcmt Co are associated (or correlated) with Busan Ind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Busan Ind has no effect on the direction of Hanilcmt i.e., Hanilcmt and Busan Ind go up and down completely randomly.
Pair Corralation between Hanilcmt and Busan Ind
Assuming the 90 days trading horizon Hanilcmt is expected to generate 5.41 times less return on investment than Busan Ind. But when comparing it to its historical volatility, Hanilcmt Co is 3.46 times less risky than Busan Ind. It trades about 0.13 of its potential returns per unit of risk. Busan Ind is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 5,800,000 in Busan Ind on September 13, 2024 and sell it today you would earn a total of 1,980,000 from holding Busan Ind or generate 34.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanilcmt Co vs. Busan Ind
Performance |
| Timeline |
| Hanilcmt |
| Busan Ind |
Hanilcmt and Busan Ind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanilcmt and Busan Ind
The main advantage of trading using opposite Hanilcmt and Busan Ind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanilcmt position performs unexpectedly, Busan Ind 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 Busan Ind will offset losses from the drop in Busan Ind's long position.| Hanilcmt vs. Posco Chemical Co | Hanilcmt vs. Naver | Hanilcmt vs. Busan Industrial Co | Hanilcmt vs. Busan Ind |
| Busan Ind vs. Finebesteel | Busan Ind vs. Dongbang Transport Logistics | Busan Ind vs. Wonil Special Steel | Busan Ind vs. BGF Retail 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |