Correlation Between Doosan Fuel and HB Technology
Can any of the company-specific risk be diversified away by investing in both Doosan Fuel and HB Technology 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 Doosan Fuel and HB Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doosan Fuel Cell and HB Technology TD, you can compare the effects of market volatilities on Doosan Fuel and HB Technology 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 Doosan Fuel with a short position of HB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doosan Fuel and HB Technology.
Diversification Opportunities for Doosan Fuel and HB Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Doosan and 078150 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Doosan Fuel Cell and HB Technology TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HB Technology TD and Doosan Fuel 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 Doosan Fuel Cell are associated (or correlated) with HB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HB Technology TD has no effect on the direction of Doosan Fuel i.e., Doosan Fuel and HB Technology go up and down completely randomly.
Pair Corralation between Doosan Fuel and HB Technology
Assuming the 90 days trading horizon Doosan Fuel Cell is expected to generate 0.68 times more return on investment than HB Technology. However, Doosan Fuel Cell is 1.46 times less risky than HB Technology. It trades about -0.05 of its potential returns per unit of risk. HB Technology TD is currently generating about -0.06 per unit of risk. If you would invest 2,355,000 in Doosan Fuel Cell on September 2, 2024 and sell it today you would lose (509,000) from holding Doosan Fuel Cell or give up 21.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doosan Fuel Cell vs. HB Technology TD
Performance |
| Timeline |
| Doosan Fuel Cell |
| HB Technology TD |
Doosan Fuel and HB Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doosan Fuel and HB Technology
The main advantage of trading using opposite Doosan Fuel and HB Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doosan Fuel position performs unexpectedly, HB Technology 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 HB Technology will offset losses from the drop in HB Technology's long position.| Doosan Fuel vs. SK Chemicals Co | Doosan Fuel vs. ECSTELECOM Co | Doosan Fuel vs. Digital Power Communications | Doosan Fuel vs. Miwon Chemicals Co |
| HB Technology vs. Dongsin Engineering Construction | HB Technology vs. Doosan Fuel Cell | HB Technology vs. Daishin Balance 1 | HB Technology vs. Total Soft Bank |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |