Correlation Between Hurum and JUSUNG ENGINEERING
Can any of the company-specific risk be diversified away by investing in both Hurum and JUSUNG ENGINEERING 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 JUSUNG ENGINEERING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurum Co and JUSUNG ENGINEERING Co, you can compare the effects of market volatilities on Hurum and JUSUNG ENGINEERING 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 JUSUNG ENGINEERING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurum and JUSUNG ENGINEERING.
Diversification Opportunities for Hurum and JUSUNG ENGINEERING
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hurum and JUSUNG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hurum Co and JUSUNG ENGINEERING Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JUSUNG ENGINEERING 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 JUSUNG ENGINEERING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JUSUNG ENGINEERING has no effect on the direction of Hurum i.e., Hurum and JUSUNG ENGINEERING go up and down completely randomly.
Pair Corralation between Hurum and JUSUNG ENGINEERING
Assuming the 90 days trading horizon Hurum Co is expected to under-perform the JUSUNG ENGINEERING. But the stock apears to be less risky and, when comparing its historical volatility, Hurum Co is 1.41 times less risky than JUSUNG ENGINEERING. The stock trades about -0.1 of its potential returns per unit of risk. The JUSUNG ENGINEERING Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 3,495,000 in JUSUNG ENGINEERING Co on September 3, 2024 and sell it today you would lose (705,000) from holding JUSUNG ENGINEERING Co or give up 20.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hurum Co vs. JUSUNG ENGINEERING Co
Performance |
| Timeline |
| Hurum |
| JUSUNG ENGINEERING |
Hurum and JUSUNG ENGINEERING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurum and JUSUNG ENGINEERING
The main advantage of trading using opposite Hurum and JUSUNG ENGINEERING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurum position performs unexpectedly, JUSUNG ENGINEERING 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 JUSUNG ENGINEERING will offset losses from the drop in JUSUNG ENGINEERING's long position.| Hurum vs. Samhwa Paint Industrial | Hurum vs. EV Advanced Material | Hurum vs. Haesung Industrial Co | Hurum vs. Hyundai Industrial 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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