Correlation Between Hanwha InvestmentSecuri and EBEST Investment
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and EBEST 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 Hanwha InvestmentSecuri and EBEST Investment 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 EBEST Investment Securities, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and EBEST 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 Hanwha InvestmentSecuri with a short position of EBEST Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and EBEST Investment.
Diversification Opportunities for Hanwha InvestmentSecuri and EBEST Investment
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanwha and EBEST is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and EBEST Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBEST Investment Sec 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 EBEST Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBEST Investment Sec has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and EBEST Investment go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and EBEST Investment
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to generate 3.36 times more return on investment than EBEST Investment. However, Hanwha InvestmentSecuri is 3.36 times more volatile than EBEST Investment Securities. It trades about 0.01 of its potential returns per unit of risk. EBEST Investment Securities is currently generating about -0.35 per unit of risk. If you would invest 357,000 in Hanwha InvestmentSecurities Co on September 1, 2024 and sell it today you would lose (3,500) from holding Hanwha InvestmentSecurities Co or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hanwha InvestmentSecurities Co vs. EBEST Investment Securities
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| EBEST Investment Sec |
Hanwha InvestmentSecuri and EBEST Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and EBEST Investment
The main advantage of trading using opposite Hanwha InvestmentSecuri and EBEST Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, EBEST 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 EBEST Investment will offset losses from the drop in EBEST Investment's long position.| Hanwha InvestmentSecuri vs. Samsung Electronics Co | Hanwha InvestmentSecuri vs. Samsung Electronics Co | Hanwha InvestmentSecuri vs. KB Financial Group | Hanwha InvestmentSecuri vs. Shinhan Financial Group |
| EBEST Investment vs. DB Financial Investment | EBEST Investment vs. Lindeman Asia Investment | EBEST Investment vs. BGF Retail Co | EBEST Investment vs. Jin Air 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |