Correlation Between Hanjin Transportation and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and Yura Tech 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 Yura Tech 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 Yura Tech Co, you can compare the effects of market volatilities on Hanjin Transportation and Yura Tech 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 Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and Yura Tech.
Diversification Opportunities for Hanjin Transportation and Yura Tech
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hanjin and Yura is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech 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 Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and Yura Tech go up and down completely randomly.
Pair Corralation between Hanjin Transportation and Yura Tech
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to under-perform the Yura Tech. But the stock apears to be less risky and, when comparing its historical volatility, Hanjin Transportation Co is 1.19 times less risky than Yura Tech. The stock trades about -0.05 of its potential returns per unit of risk. The Yura Tech Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 685,000 in Yura Tech Co on September 13, 2024 and sell it today you would earn a total of 37,000 from holding Yura Tech Co or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Hanjin Transportation Co vs. Yura Tech Co
Performance |
| Timeline |
| Hanjin Transportation |
| Yura Tech |
Hanjin Transportation and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and Yura Tech
The main advantage of trading using opposite Hanjin Transportation and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| Hanjin Transportation vs. Samsung Electronics Co | Hanjin Transportation vs. Samsung Electronics Co | Hanjin Transportation vs. SK Hynix | Hanjin Transportation vs. POSCO Holdings |
| Yura Tech vs. Daou Data Corp | Yura Tech vs. Solution Advanced Technology | Yura Tech vs. Busan Industrial Co | Yura Tech vs. Busan Ind |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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