Correlation Between Hanil Iron and Jahwa Electron
Can any of the company-specific risk be diversified away by investing in both Hanil Iron and Jahwa Electron 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 Jahwa Electron 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 Jahwa Electron, you can compare the effects of market volatilities on Hanil Iron and Jahwa Electron 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 Jahwa Electron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanil Iron and Jahwa Electron.
Diversification Opportunities for Hanil Iron and Jahwa Electron
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanil and Jahwa is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hanil Iron Steel and Jahwa Electron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahwa Electron 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 Jahwa Electron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahwa Electron has no effect on the direction of Hanil Iron i.e., Hanil Iron and Jahwa Electron go up and down completely randomly.
Pair Corralation between Hanil Iron and Jahwa Electron
Assuming the 90 days trading horizon Hanil Iron Steel is expected to generate 0.55 times more return on investment than Jahwa Electron. However, Hanil Iron Steel is 1.83 times less risky than Jahwa Electron. It trades about 0.02 of its potential returns per unit of risk. Jahwa Electron is currently generating about -0.19 per unit of risk. If you would invest 203,500 in Hanil Iron Steel on August 26, 2024 and sell it today you would earn a total of 1,000.00 from holding Hanil Iron Steel or generate 0.49% 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. Jahwa Electron
Performance |
| Timeline |
| Hanil Iron Steel |
| Jahwa Electron |
Hanil Iron and Jahwa Electron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanil Iron and Jahwa Electron
The main advantage of trading using opposite Hanil Iron and Jahwa Electron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanil Iron position performs unexpectedly, Jahwa Electron 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 Jahwa Electron will offset losses from the drop in Jahwa Electron's long position.| Hanil Iron vs. AptaBio Therapeutics | Hanil Iron vs. Daewoo SBI SPAC | Hanil Iron vs. Dream Security co | Hanil Iron vs. Microfriend |
| Jahwa Electron vs. Seoyon Topmetal Co | Jahwa Electron vs. Seoul Semiconductor Co | Jahwa Electron vs. Formetal Co | Jahwa Electron vs. Daedong Metals 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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