Correlation Between Carriesoft and HansBiomed
Can any of the company-specific risk be diversified away by investing in both Carriesoft and HansBiomed 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 Carriesoft and HansBiomed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriesoft Co and HansBiomed, you can compare the effects of market volatilities on Carriesoft and HansBiomed 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 Carriesoft with a short position of HansBiomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriesoft and HansBiomed.
Diversification Opportunities for Carriesoft and HansBiomed
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carriesoft and HansBiomed is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Carriesoft Co and HansBiomed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HansBiomed and Carriesoft 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 Carriesoft Co are associated (or correlated) with HansBiomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HansBiomed has no effect on the direction of Carriesoft i.e., Carriesoft and HansBiomed go up and down completely randomly.
Pair Corralation between Carriesoft and HansBiomed
Assuming the 90 days trading horizon Carriesoft Co is expected to under-perform the HansBiomed. In addition to that, Carriesoft is 1.21 times more volatile than HansBiomed. It trades about -0.02 of its total potential returns per unit of risk. HansBiomed is currently generating about 0.0 per unit of volatility. If you would invest 990,000 in HansBiomed on August 28, 2024 and sell it today you would lose (219,000) from holding HansBiomed or give up 22.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carriesoft Co vs. HansBiomed
Performance |
| Timeline |
| Carriesoft |
| HansBiomed |
Carriesoft and HansBiomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriesoft and HansBiomed
The main advantage of trading using opposite Carriesoft and HansBiomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriesoft position performs unexpectedly, HansBiomed 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 HansBiomed will offset losses from the drop in HansBiomed's long position.| Carriesoft vs. NH Investment Securities | Carriesoft vs. LB Investment | Carriesoft vs. Organic Special Pet | Carriesoft vs. Hyundai Green Food |
| HansBiomed vs. Dong A Steel Technology | HansBiomed vs. Puloon Technology | HansBiomed vs. Woori Technology | HansBiomed vs. FoodNamoo |
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 Stocks Directory module to find actively traded stocks across global markets.
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