Correlation Between Hurum and Haesung DS
Can any of the company-specific risk be diversified away by investing in both Hurum and Haesung DS 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 Haesung DS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hurum Co and Haesung DS Co, you can compare the effects of market volatilities on Hurum and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurum and Haesung DS.
Diversification Opportunities for Hurum and Haesung DS
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hurum and Haesung is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hurum Co and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of Hurum i.e., Hurum and Haesung DS go up and down completely randomly.
Pair Corralation between Hurum and Haesung DS
Assuming the 90 days trading horizon Hurum Co is expected to generate 0.49 times more return on investment than Haesung DS. However, Hurum Co is 2.04 times less risky than Haesung DS. It trades about -0.32 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.23 per unit of risk. If you would invest 80,800 in Hurum Co on September 3, 2024 and sell it today you would lose (10,300) from holding Hurum Co or give up 12.75% 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. Haesung DS Co
Performance |
| Timeline |
| Hurum |
| Haesung DS |
Hurum and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hurum and Haesung DS
The main advantage of trading using opposite Hurum and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hurum position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| Hurum vs. Samhwa Paint Industrial | Hurum vs. EV Advanced Material | Hurum vs. Haesung Industrial Co | Hurum vs. Hyundai Industrial Co |
| Haesung DS vs. Dongsin Engineering Construction | Haesung DS vs. Doosan Fuel Cell | Haesung DS vs. Daishin Balance 1 | Haesung DS 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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