Correlation Between Hanjin Transportation and Jeong Moon
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and Jeong Moon 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 Hanjin Transportation and Jeong Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and Jeong Moon Information, you can compare the effects of market volatilities on Hanjin Transportation and Jeong Moon 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 Hanjin Transportation with a short position of Jeong Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and Jeong Moon.
Diversification Opportunities for Hanjin Transportation and Jeong Moon
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanjin and Jeong is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and Jeong Moon Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeong Moon Information and Hanjin Transportation 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 Hanjin Transportation Co are associated (or correlated) with Jeong Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeong Moon Information has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and Jeong Moon go up and down completely randomly.
Pair Corralation between Hanjin Transportation and Jeong Moon
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.87 times more return on investment than Jeong Moon. However, Hanjin Transportation Co is 1.15 times less risky than Jeong Moon. It trades about 0.0 of its potential returns per unit of risk. Jeong Moon Information is currently generating about -0.03 per unit of risk. If you would invest 2,084,850 in Hanjin Transportation Co on October 27, 2024 and sell it today you would lose (144,850) from holding Hanjin Transportation Co or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjin Transportation Co vs. Jeong Moon Information
Performance |
| Timeline |
| Hanjin Transportation |
| Jeong Moon Information |
Hanjin Transportation and Jeong Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and Jeong Moon
The main advantage of trading using opposite Hanjin Transportation and Jeong Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, Jeong Moon 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 Jeong Moon will offset losses from the drop in Jeong Moon's long position.| Hanjin Transportation vs. KB Financial Group | Hanjin Transportation vs. Shinhan Financial Group | Hanjin Transportation vs. Hana Financial | Hanjin Transportation vs. Woori Financial Group |
| Jeong Moon vs. Samsung Electronics Co | Jeong Moon vs. Samsung Electronics Co | Jeong Moon vs. SK Hynix | Jeong Moon vs. HMM 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |