Correlation Between Hurum and Kginicis CoLtd
Can any of the company-specific risk be diversified away by investing in both Hurum and Kginicis 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 Hurum and Kginicis CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurum Co and Kginicis CoLtd, you can compare the effects of market volatilities on Hurum and Kginicis 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 Hurum with a short position of Kginicis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurum and Kginicis CoLtd.
Diversification Opportunities for Hurum and Kginicis CoLtd
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hurum and Kginicis is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hurum Co and Kginicis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kginicis CoLtd and Hurum 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 Hurum Co are associated (or correlated) with Kginicis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kginicis CoLtd has no effect on the direction of Hurum i.e., Hurum and Kginicis CoLtd go up and down completely randomly.
Pair Corralation between Hurum and Kginicis CoLtd
Assuming the 90 days trading horizon Hurum Co is expected to under-perform the Kginicis CoLtd. In addition to that, Hurum is 2.02 times more volatile than Kginicis CoLtd. It trades about -0.1 of its total potential returns per unit of risk. Kginicis CoLtd is currently generating about -0.1 per unit of volatility. If you would invest 1,108,000 in Kginicis CoLtd on September 2, 2024 and sell it today you would lose (186,000) from holding Kginicis CoLtd or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurum Co vs. Kginicis CoLtd
Performance |
| Timeline |
| Hurum |
| Kginicis CoLtd |
Hurum and Kginicis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurum and Kginicis CoLtd
The main advantage of trading using opposite Hurum and Kginicis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurum position performs unexpectedly, Kginicis 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 Kginicis CoLtd will offset losses from the drop in Kginicis CoLtd's long position.| Hurum vs. Samsung Electronics Co | Hurum vs. Samsung Electronics Co | Hurum vs. LG Energy Solution | Hurum vs. SK Hynix |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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