Correlation Between Hanjin Transportation and SV Investment
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and SV Investment 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 SV Investment 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 SV Investment, you can compare the effects of market volatilities on Hanjin Transportation and SV Investment 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 SV Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and SV Investment.
Diversification Opportunities for Hanjin Transportation and SV Investment
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanjin and 289080 is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and SV Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SV Investment 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 SV Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SV Investment has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and SV Investment go up and down completely randomly.
Pair Corralation between Hanjin Transportation and SV Investment
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.66 times more return on investment than SV Investment. However, Hanjin Transportation Co is 1.51 times less risky than SV Investment. It trades about -0.01 of its potential returns per unit of risk. SV Investment is currently generating about -0.03 per unit of risk. If you would invest 2,150,104 in Hanjin Transportation Co on August 27, 2024 and sell it today you would lose (312,104) from holding Hanjin Transportation Co or give up 14.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjin Transportation Co vs. SV Investment
Performance |
| Timeline |
| Hanjin Transportation |
| SV Investment |
Hanjin Transportation and SV Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and SV Investment
The main advantage of trading using opposite Hanjin Transportation and SV Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, SV Investment 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 SV Investment will offset losses from the drop in SV Investment's long position.| Hanjin Transportation vs. AptaBio Therapeutics | Hanjin Transportation vs. Daewoo SBI SPAC | Hanjin Transportation vs. Dream Security co | Hanjin Transportation vs. Microfriend |
| SV Investment vs. Pureun Mutual Savings | SV Investment vs. KakaoBank Corp | SV Investment vs. Hanjin Transportation Co | SV Investment vs. KB Financial Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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