Correlation Between Samick Musical and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Samick Musical and Hana Financial 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 Samick Musical and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samick Musical Instruments and Hana Financial, you can compare the effects of market volatilities on Samick Musical and Hana Financial 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 Samick Musical with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samick Musical and Hana Financial.
Diversification Opportunities for Samick Musical and Hana Financial
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samick and Hana is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Samick Musical Instruments and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial and Samick Musical 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 Samick Musical Instruments are associated (or correlated) with Hana Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Financial has no effect on the direction of Samick Musical i.e., Samick Musical and Hana Financial go up and down completely randomly.
Pair Corralation between Samick Musical and Hana Financial
Assuming the 90 days trading horizon Samick Musical is expected to generate 3.86 times less return on investment than Hana Financial. But when comparing it to its historical volatility, Samick Musical Instruments is 3.17 times less risky than Hana Financial. It trades about 0.22 of its potential returns per unit of risk. Hana Financial is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 6,030,000 in Hana Financial on September 5, 2024 and sell it today you would earn a total of 570,000 from holding Hana Financial or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samick Musical Instruments vs. Hana Financial
Performance |
| Timeline |
| Samick Musical Instr |
| Hana Financial |
Samick Musical and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samick Musical and Hana Financial
The main advantage of trading using opposite Samick Musical and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samick Musical position performs unexpectedly, Hana Financial 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 Hana Financial will offset losses from the drop in Hana Financial's long position.| Samick Musical vs. AptaBio Therapeutics | Samick Musical vs. Daewoo SBI SPAC | Samick Musical vs. Dream Security co | Samick Musical vs. Microfriend |
| Hana Financial vs. Husteel | Hana Financial vs. Samick Musical Instruments | Hana Financial vs. Dong A Steel Technology | Hana Financial vs. J Steel 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 CEOs Directory module to screen CEOs from public companies around the world.
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