Correlation Between Hanwha InvestmentSecuri and Han Kook
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and Han Kook 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 Hanwha InvestmentSecuri and Han Kook into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanwha InvestmentSecurities Co and Han Kook Capital, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and Han Kook 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 Hanwha InvestmentSecuri with a short position of Han Kook. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and Han Kook.
Diversification Opportunities for Hanwha InvestmentSecuri and Han Kook
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanwha and Han is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and Han Kook Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Han Kook Capital and Hanwha InvestmentSecuri 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 Hanwha InvestmentSecurities Co are associated (or correlated) with Han Kook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Han Kook Capital has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and Han Kook go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and Han Kook
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to generate 2.72 times more return on investment than Han Kook. However, Hanwha InvestmentSecuri is 2.72 times more volatile than Han Kook Capital. It trades about 0.03 of its potential returns per unit of risk. Han Kook Capital is currently generating about -0.02 per unit of risk. If you would invest 282,500 in Hanwha InvestmentSecurities Co on November 27, 2024 and sell it today you would earn a total of 70,000 from holding Hanwha InvestmentSecurities Co or generate 24.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hanwha InvestmentSecurities Co vs. Han Kook Capital
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| Han Kook Capital |
Hanwha InvestmentSecuri and Han Kook Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and Han Kook
The main advantage of trading using opposite Hanwha InvestmentSecuri and Han Kook positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, Han Kook 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 Han Kook will offset losses from the drop in Han Kook's long position.| Hanwha InvestmentSecuri vs. Stic Investments | Hanwha InvestmentSecuri vs. LB Investment | Hanwha InvestmentSecuri vs. Seers Technology | Hanwha InvestmentSecuri vs. NH Investment Securities |
| Han Kook vs. Daejung Chemicals Metals | Han Kook vs. Sempio Foods Co | Han Kook vs. Hyundai Green Food | Han Kook vs. Choil Aluminum |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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