Correlation Between Hankukpackage and Cytogen
Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Cytogen 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 Cytogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Cytogen, you can compare the effects of market volatilities on Hankukpackage and Cytogen 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 Cytogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Cytogen.
Diversification Opportunities for Hankukpackage and Cytogen
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hankukpackage and Cytogen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Cytogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cytogen 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 Cytogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cytogen has no effect on the direction of Hankukpackage i.e., Hankukpackage and Cytogen go up and down completely randomly.
Pair Corralation between Hankukpackage and Cytogen
Assuming the 90 days trading horizon Hankukpackage Co is expected to generate 0.29 times more return on investment than Cytogen. However, Hankukpackage Co is 3.4 times less risky than Cytogen. It trades about -0.16 of its potential returns per unit of risk. Cytogen is currently generating about -0.18 per unit of risk. If you would invest 183,800 in Hankukpackage Co on September 11, 2024 and sell it today you would lose (21,500) from holding Hankukpackage Co or give up 11.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hankukpackage Co vs. Cytogen
Performance |
Timeline |
Hankukpackage |
Cytogen |
Hankukpackage and Cytogen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hankukpackage and Cytogen
The main advantage of trading using opposite Hankukpackage and Cytogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Cytogen 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 Cytogen will offset losses from the drop in Cytogen's long position.Hankukpackage vs. Pum Tech Korea Co | Hankukpackage vs. Seung Il | Hankukpackage vs. Busan Industrial Co | Hankukpackage vs. Busan Ind |
Cytogen vs. Korea Information Engineering | Cytogen vs. HB Technology TD | Cytogen vs. Daou Data Corp | Cytogen vs. Shinsegae Information Communication |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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