Correlation Between SeAH Bestee and Hanwha Solutions
Can any of the company-specific risk be diversified away by investing in both SeAH Bestee and Hanwha Solutions 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 SeAH Bestee and Hanwha Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Bestee and Hanwha Solutions, you can compare the effects of market volatilities on SeAH Bestee and Hanwha Solutions 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 SeAH Bestee with a short position of Hanwha Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Bestee and Hanwha Solutions.
Diversification Opportunities for SeAH Bestee and Hanwha Solutions
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SeAH and Hanwha is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Bestee and Hanwha Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Solutions and SeAH Bestee 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 SeAH Bestee are associated (or correlated) with Hanwha Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Solutions has no effect on the direction of SeAH Bestee i.e., SeAH Bestee and Hanwha Solutions go up and down completely randomly.
Pair Corralation between SeAH Bestee and Hanwha Solutions
Assuming the 90 days trading horizon SeAH Bestee is expected to generate 1.72 times more return on investment than Hanwha Solutions. However, SeAH Bestee is 1.72 times more volatile than Hanwha Solutions. It trades about 0.15 of its potential returns per unit of risk. Hanwha Solutions is currently generating about -0.37 per unit of risk. If you would invest 1,984,000 in SeAH Bestee on September 1, 2024 and sell it today you would earn a total of 316,000 from holding SeAH Bestee or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Bestee vs. Hanwha Solutions
Performance |
| Timeline |
| SeAH Bestee |
| Hanwha Solutions |
SeAH Bestee and Hanwha Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Bestee and Hanwha Solutions
The main advantage of trading using opposite SeAH Bestee and Hanwha Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Bestee position performs unexpectedly, Hanwha Solutions 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 Hanwha Solutions will offset losses from the drop in Hanwha Solutions' long position.| SeAH Bestee vs. Air Busan Co | SeAH Bestee vs. BooKook Steel Co | SeAH Bestee vs. Daechang Steel Co | SeAH Bestee vs. Dongil Steel Co |
| Hanwha Solutions vs. Lotte Energy Materials | Hanwha Solutions vs. Chorokbaem Healthcare Co | Hanwha Solutions vs. Union Materials Corp | Hanwha Solutions vs. Top Material Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets |