Correlation Between Hanwha InvestmentSecuri and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and Sangsangin 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 Sangsangin 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 Sangsangin Investment Securities, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and Sangsangin 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 Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and Sangsangin Investment.
Diversification Opportunities for Hanwha InvestmentSecuri and Sangsangin Investment
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanwha and Sangsangin is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment 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 Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and Sangsangin Investment go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and Sangsangin Investment
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to generate 4.75 times more return on investment than Sangsangin Investment. However, Hanwha InvestmentSecuri is 4.75 times more volatile than Sangsangin Investment Securities. It trades about 0.12 of its potential returns per unit of risk. Sangsangin Investment Securities is currently generating about -0.22 per unit of risk. If you would invest 668,000 in Hanwha InvestmentSecurities Co on August 26, 2024 and sell it today you would earn a total of 98,000 from holding Hanwha InvestmentSecurities Co or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanwha InvestmentSecurities Co vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| Sangsangin Investment |
Hanwha InvestmentSecuri and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and Sangsangin Investment
The main advantage of trading using opposite Hanwha InvestmentSecuri and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, Sangsangin 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| Hanwha InvestmentSecuri vs. ECSTELECOM Co | Hanwha InvestmentSecuri vs. Koryo Credit Information | Hanwha InvestmentSecuri vs. DB Insurance Co | Hanwha InvestmentSecuri vs. Jb Financial |
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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.
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