Correlation Between Hankukpackage and Eugene Technology
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hankukpackage Co vs. Eugene Technology CoLtd
Performance |
Timeline |
Hankukpackage |
Eugene Technology CoLtd |
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.Hankukpackage vs. Stic Investments | Hankukpackage vs. Infinitt Healthcare Co | Hankukpackage vs. TS Investment Corp | Hankukpackage vs. Coloray International Investment |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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