Correlation Between Hankukpackage and Eugene Technology

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Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Eugene 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 Hankukpackage and Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Eugene Technology CoLtd, you can compare the effects of market volatilities on Hankukpackage and Eugene 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 Hankukpackage with a short position of Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Eugene Technology.

Diversification Opportunities for Hankukpackage and Eugene Technology

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Hankukpackage and Eugene is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd and Hankukpackage 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 Hankukpackage Co are associated (or correlated) with Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Hankukpackage i.e., Hankukpackage and Eugene Technology go up and down completely randomly.

Pair Corralation between Hankukpackage and Eugene Technology

Assuming the 90 days trading horizon Hankukpackage Co is expected to under-perform the Eugene Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hankukpackage Co is 1.45 times less risky than Eugene Technology. The stock trades about -0.08 of its potential returns per unit of risk. The Eugene Technology CoLtd is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,590,000  in Eugene Technology CoLtd on October 26, 2024 and sell it today you would earn a total of  355,000  from holding Eugene Technology CoLtd or generate 9.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Hankukpackage Co  vs.  Eugene Technology CoLtd

 Performance 
       Timeline  
Hankukpackage 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Hankukpackage Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Eugene Technology CoLtd 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Eugene Technology CoLtd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Eugene Technology sustained solid returns over the last few months and may actually be approaching a breakup point.

Hankukpackage and Eugene Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Hankukpackage and Eugene Technology

The main advantage of trading using opposite Hankukpackage and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Eugene 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.
The idea behind Hankukpackage Co and Eugene Technology CoLtd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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