Correlation Between Hanilcmt and ASTORY CoLtd
Can any of the company-specific risk be diversified away by investing in both Hanilcmt and ASTORY CoLtd 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 ASTORY CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanilcmt Co and ASTORY CoLtd, you can compare the effects of market volatilities on Hanilcmt and ASTORY CoLtd 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 ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanilcmt and ASTORY CoLtd.
Diversification Opportunities for Hanilcmt and ASTORY CoLtd
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hanilcmt and ASTORY is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hanilcmt Co and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY CoLtd 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 ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of Hanilcmt i.e., Hanilcmt and ASTORY CoLtd go up and down completely randomly.
Pair Corralation between Hanilcmt and ASTORY CoLtd
Assuming the 90 days trading horizon Hanilcmt is expected to generate 3.67 times less return on investment than ASTORY CoLtd. But when comparing it to its historical volatility, Hanilcmt Co is 1.92 times less risky than ASTORY CoLtd. It trades about 0.1 of its potential returns per unit of risk. ASTORY CoLtd is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 693,000 in ASTORY CoLtd on September 12, 2024 and sell it today you would earn a total of 133,000 from holding ASTORY CoLtd or generate 19.19% 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. ASTORY CoLtd
Performance |
| Timeline |
| Hanilcmt |
| ASTORY CoLtd |
Hanilcmt and ASTORY CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanilcmt and ASTORY CoLtd
The main advantage of trading using opposite Hanilcmt and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanilcmt position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd's long position.| Hanilcmt vs. Solution Advanced Technology | Hanilcmt vs. Korea Shipbuilding Offshore | Hanilcmt vs. Shinhan Financial Group | Hanilcmt vs. Settlebank |
| ASTORY CoLtd vs. Cube Entertainment | ASTORY CoLtd vs. PlayD Co | ASTORY CoLtd vs. Neungyule Education | ASTORY CoLtd vs. Solution Advanced Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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