Correlation Between Hanil Iron and Hite Jinro
Can any of the company-specific risk be diversified away by investing in both Hanil Iron and Hite Jinro 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 Hanil Iron and Hite Jinro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanil Iron Steel and Hite Jinro, you can compare the effects of market volatilities on Hanil Iron and Hite Jinro 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 Hanil Iron with a short position of Hite Jinro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanil Iron and Hite Jinro.
Diversification Opportunities for Hanil Iron and Hite Jinro
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hanil and Hite is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hanil Iron Steel and Hite Jinro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hite Jinro and Hanil Iron 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 Hanil Iron Steel are associated (or correlated) with Hite Jinro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hite Jinro has no effect on the direction of Hanil Iron i.e., Hanil Iron and Hite Jinro go up and down completely randomly.
Pair Corralation between Hanil Iron and Hite Jinro
Assuming the 90 days trading horizon Hanil Iron Steel is expected to under-perform the Hite Jinro. In addition to that, Hanil Iron is 1.24 times more volatile than Hite Jinro. It trades about -0.03 of its total potential returns per unit of risk. Hite Jinro is currently generating about -0.01 per unit of volatility. If you would invest 2,435,998 in Hite Jinro on September 3, 2024 and sell it today you would lose (365,998) from holding Hite Jinro or give up 15.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Hanil Iron Steel vs. Hite Jinro
Performance |
| Timeline |
| Hanil Iron Steel |
| Hite Jinro |
Hanil Iron and Hite Jinro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanil Iron and Hite Jinro
The main advantage of trading using opposite Hanil Iron and Hite Jinro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanil Iron position performs unexpectedly, Hite Jinro 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 Hite Jinro will offset losses from the drop in Hite Jinro's long position.| Hanil Iron vs. AptaBio Therapeutics | Hanil Iron vs. Daewoo SBI SPAC | Hanil Iron vs. Dream Security co | Hanil Iron vs. Microfriend |
| Hite Jinro vs. Dongil Steel Co | Hite Jinro vs. Innowireless Co | Hite Jinro vs. Lotte Data Communication | Hite Jinro vs. Hanil Iron Steel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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