Correlation Between Hanwha InvestmentSecuri and ISU Abxis
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and ISU Abxis 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 ISU Abxis 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 ISU Abxis Co, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and ISU Abxis 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 ISU Abxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and ISU Abxis.
Diversification Opportunities for Hanwha InvestmentSecuri and ISU Abxis
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanwha and ISU is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and ISU Abxis Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISU Abxis 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 ISU Abxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISU Abxis has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and ISU Abxis go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and ISU Abxis
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to under-perform the ISU Abxis. But the stock apears to be less risky and, when comparing its historical volatility, Hanwha InvestmentSecurities Co is 1.46 times less risky than ISU Abxis. The stock trades about -0.08 of its potential returns per unit of risk. The ISU Abxis Co is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 445,500 in ISU Abxis Co on December 1, 2024 and sell it today you would earn a total of 141,500 from holding ISU Abxis Co or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hanwha InvestmentSecurities Co vs. ISU Abxis Co
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| ISU Abxis |
Hanwha InvestmentSecuri and ISU Abxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and ISU Abxis
The main advantage of trading using opposite Hanwha InvestmentSecuri and ISU Abxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, ISU Abxis 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 ISU Abxis will offset losses from the drop in ISU Abxis' long position.| Hanwha InvestmentSecuri vs. INNOX Advanced Materials | Hanwha InvestmentSecuri vs. Ecoplastic | Hanwha InvestmentSecuri vs. Daejoo Electronic Materials | Hanwha InvestmentSecuri vs. Union Materials Corp |
| ISU Abxis vs. Lake Materials Co | ISU Abxis vs. SK Telecom Co | ISU Abxis vs. Kolon Plastics | ISU Abxis vs. Ecoplastic |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |