Correlation Between Hankukpackage and Moadata

Can any of the company-specific risk be diversified away by investing in both Hankukpackage and Moadata 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 Moadata into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hankukpackage Co and Moadata Co, you can compare the effects of market volatilities on Hankukpackage and Moadata 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 Moadata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Moadata.

Diversification Opportunities for Hankukpackage and Moadata

0.62

Correlation Coefficient

Hankukpackage  Moadata

Poor diversification

The 3 months correlation between Hankukpackage and Moadata is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage Co and Moadata Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moadata 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 Moadata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moadata has no effect on the direction of Hankukpackage i.e., Hankukpackage and Moadata go up and down completely randomly.

Pair Corralation between Hankukpackage and Moadata

Assuming the 90 days trading horizon Hankukpackage Co is expected to generate 0.32 times more return on investment than Moadata. However, Hankukpackage Co is 3.12 times less risky than Moadata. It trades about -0.06 of its potential returns per unit of risk. Moadata Co is currently generating about -0.1 per unit of risk. If you would invest  167,900  in Hankukpackage Co on December 28, 2024 and sell it today you would lose (6,100) from holding Hankukpackage Co or give up 3.63% 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.  Moadata Co

Hankukpackage

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hankukpackage Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Hankukpackage is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Moadata

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moadata Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Hankukpackage and Moadata

The main advantage of trading using opposite Hankukpackage and Moadata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage position performs unexpectedly, Moadata 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 Moadata will offset losses from the drop in Moadata's long position.

The idea behind Hankukpackage Co and Moadata Co 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 Commodity Directory module to find actively traded commodities issued by global exchanges.