Correlation Between Hanjin Transportation and Seers Technology
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and Seers Technology 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 Seers Technology 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 Seers Technology, you can compare the effects of market volatilities on Hanjin Transportation and Seers Technology 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 Seers Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and Seers Technology.
Diversification Opportunities for Hanjin Transportation and Seers Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hanjin and Seers is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and Seers Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seers Technology 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 Seers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seers Technology has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and Seers Technology go up and down completely randomly.
Pair Corralation between Hanjin Transportation and Seers Technology
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.38 times more return on investment than Seers Technology. However, Hanjin Transportation Co is 2.62 times less risky than Seers Technology. It trades about 0.0 of its potential returns per unit of risk. Seers Technology is currently generating about -0.01 per unit of risk. If you would invest 2,075,395 in Hanjin Transportation Co on November 7, 2024 and sell it today you would lose (155,395) from holding Hanjin Transportation Co or give up 7.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 31.59% |
| Values | Daily Returns |
Hanjin Transportation Co vs. Seers Technology
Performance |
| Timeline |
| Hanjin Transportation |
| Seers Technology |
Hanjin Transportation and Seers Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjin Transportation and Seers Technology
The main advantage of trading using opposite Hanjin Transportation and Seers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, Seers Technology 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 Seers Technology will offset losses from the drop in Seers Technology's long position.| Hanjin Transportation vs. Seoul Electronics Telecom | Hanjin Transportation vs. Korea Alcohol Industrial | Hanjin Transportation vs. BGF Retail Co | Hanjin Transportation vs. Aprogen Healthcare Games |
| Seers Technology vs. Korea Electronic Certification | Seers Technology vs. Daewoo Electronic Components | Seers Technology vs. FOODWELL Co | Seers Technology vs. Cuckoo Electronics 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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