Correlation Between Hanil Iron and Kisan Telecom
Can any of the company-specific risk be diversified away by investing in both Hanil Iron and Kisan Telecom 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 Kisan Telecom 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 Kisan Telecom Co, you can compare the effects of market volatilities on Hanil Iron and Kisan Telecom 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 Kisan Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanil Iron and Kisan Telecom.
Diversification Opportunities for Hanil Iron and Kisan Telecom
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanil and Kisan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hanil Iron Steel and Kisan Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kisan Telecom 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 Kisan Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kisan Telecom has no effect on the direction of Hanil Iron i.e., Hanil Iron and Kisan Telecom go up and down completely randomly.
Pair Corralation between Hanil Iron and Kisan Telecom
Assuming the 90 days trading horizon Hanil Iron Steel is expected to generate 1.98 times more return on investment than Kisan Telecom. However, Hanil Iron is 1.98 times more volatile than Kisan Telecom Co. It trades about 0.06 of its potential returns per unit of risk. Kisan Telecom Co is currently generating about -0.12 per unit of risk. If you would invest 199,900 in Hanil Iron Steel on August 28, 2024 and sell it today you would earn a total of 4,100 from holding Hanil Iron Steel or generate 2.05% 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. Kisan Telecom Co
Performance |
| Timeline |
| Hanil Iron Steel |
| Kisan Telecom |
Hanil Iron and Kisan Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanil Iron and Kisan Telecom
The main advantage of trading using opposite Hanil Iron and Kisan Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanil Iron position performs unexpectedly, Kisan Telecom 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 Kisan Telecom will offset losses from the drop in Kisan Telecom's long position.| Hanil Iron vs. YG Entertainment | Hanil Iron vs. Nice Information Telecommunication | Hanil Iron vs. SM Entertainment Co | Hanil Iron vs. Wireless Power Amplifier |
| Kisan Telecom vs. Digital Multimedia Technology | Kisan Telecom vs. Kaonmedia Co | Kisan Telecom vs. FNC Entertainment Co | Kisan Telecom vs. Innowireless 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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