Correlation Between Hanil Iron and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Hanil Iron and Samyoung Electronics 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 Samyoung Electronics 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 Samyoung Electronics Co, you can compare the effects of market volatilities on Hanil Iron and Samyoung Electronics 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanil Iron and Samyoung Electronics.
Diversification Opportunities for Hanil Iron and Samyoung Electronics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanil and Samyoung is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hanil Iron Steel and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Hanil Iron i.e., Hanil Iron and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Hanil Iron and Samyoung Electronics
Assuming the 90 days trading horizon Hanil Iron Steel is expected to under-perform the Samyoung Electronics. In addition to that, Hanil Iron is 1.11 times more volatile than Samyoung Electronics Co. It trades about -0.06 of its total potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.02 per unit of volatility. If you would invest 965,059 in Samyoung Electronics Co on August 29, 2024 and sell it today you would earn a total of 53,941 from holding Samyoung Electronics Co or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanil Iron Steel vs. Samyoung Electronics Co
Performance |
| Timeline |
| Hanil Iron Steel |
| Samyoung Electronics |
Hanil Iron and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanil Iron and Samyoung Electronics
The main advantage of trading using opposite Hanil Iron and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanil Iron position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Hanil Iron vs. LS Materials | Hanil Iron vs. Hyosung Advanced Materials | Hanil Iron vs. NH Investment Securities | Hanil Iron vs. PI Advanced Materials |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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