Correlation Between National Plastic and Heungkuk Metaltech
Can any of the company-specific risk be diversified away by investing in both National Plastic and Heungkuk Metaltech 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 National Plastic and Heungkuk Metaltech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Plastic Co and Heungkuk Metaltech CoLtd, you can compare the effects of market volatilities on National Plastic and Heungkuk Metaltech 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 National Plastic with a short position of Heungkuk Metaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Plastic and Heungkuk Metaltech.
Diversification Opportunities for National Plastic and Heungkuk Metaltech
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Heungkuk is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding National Plastic Co and Heungkuk Metaltech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heungkuk Metaltech CoLtd and National Plastic 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 National Plastic Co are associated (or correlated) with Heungkuk Metaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heungkuk Metaltech CoLtd has no effect on the direction of National Plastic i.e., National Plastic and Heungkuk Metaltech go up and down completely randomly.
Pair Corralation between National Plastic and Heungkuk Metaltech
Assuming the 90 days trading horizon National Plastic is expected to generate 3.79 times less return on investment than Heungkuk Metaltech. But when comparing it to its historical volatility, National Plastic Co is 1.48 times less risky than Heungkuk Metaltech. It trades about 0.01 of its potential returns per unit of risk. Heungkuk Metaltech CoLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 514,524 in Heungkuk Metaltech CoLtd on October 8, 2024 and sell it today you would earn a total of 17,476 from holding Heungkuk Metaltech CoLtd or generate 3.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
National Plastic Co vs. Heungkuk Metaltech CoLtd
Performance |
Timeline |
National Plastic |
Heungkuk Metaltech CoLtd |
National Plastic and Heungkuk Metaltech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Plastic and Heungkuk Metaltech
The main advantage of trading using opposite National Plastic and Heungkuk Metaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Plastic position performs unexpectedly, Heungkuk Metaltech 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 Heungkuk Metaltech will offset losses from the drop in Heungkuk Metaltech's long position.National Plastic vs. LAKE MATERIALS LTD | National Plastic vs. LS Materials | National Plastic vs. PJ Metal Co | National Plastic vs. Hankook Furniture Co |
Heungkuk Metaltech vs. ENF Technology Co | Heungkuk Metaltech vs. KG Eco Technology | Heungkuk Metaltech vs. Daou Technology | Heungkuk Metaltech vs. Eugene Technology CoLtd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |