Correlation Between Hanil Iron and Han Kook
Can any of the company-specific risk be diversified away by investing in both Hanil Iron and Han Kook 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 Han Kook 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 Han Kook Steel, you can compare the effects of market volatilities on Hanil Iron and Han Kook 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 Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanil Iron and Han Kook.
Diversification Opportunities for Hanil Iron and Han Kook
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanil and Han is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hanil Iron Steel and Han Kook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook Steel 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 Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Steel has no effect on the direction of Hanil Iron i.e., Hanil Iron and Han Kook go up and down completely randomly.
Pair Corralation between Hanil Iron and Han Kook
Assuming the 90 days trading horizon Hanil Iron is expected to generate 3.14 times less return on investment than Han Kook. But when comparing it to its historical volatility, Hanil Iron Steel is 3.52 times less risky than Han Kook. It trades about 0.1 of its potential returns per unit of risk. Han Kook Steel is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 198,500 in Han Kook Steel on September 3, 2024 and sell it today you would earn a total of 17,000 from holding Han Kook Steel or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanil Iron Steel vs. Han Kook Steel
Performance |
| Timeline |
| Hanil Iron Steel |
| Han Kook Steel |
Hanil Iron and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanil Iron and Han Kook
The main advantage of trading using opposite Hanil Iron and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanil Iron position performs unexpectedly, Han Kook 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 Han Kook will offset losses from the drop in Han Kook's long position.| Hanil Iron vs. AptaBio Therapeutics | Hanil Iron vs. Daewoo SBI SPAC | Hanil Iron vs. Dream Security co | Hanil Iron vs. Microfriend |
| Han Kook vs. Seah Steel Corp | Han Kook vs. Ni Steel | Han Kook vs. Korea Steel Co | Han Kook vs. Bookook 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Transaction History View history of all your transactions and understand their impact on performance |