Correlation Between Hanwha InvestmentSecuri and Jeju Bank
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and Jeju Bank 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 Jeju Bank 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 Jeju Bank, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and Jeju Bank 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 Jeju Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and Jeju Bank.
Diversification Opportunities for Hanwha InvestmentSecuri and Jeju Bank
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanwha and Jeju is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and Jeju Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeju Bank 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 Jeju Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeju Bank has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and Jeju Bank go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and Jeju Bank
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to generate 5.22 times more return on investment than Jeju Bank. However, Hanwha InvestmentSecuri is 5.22 times more volatile than Jeju Bank. It trades about 0.03 of its potential returns per unit of risk. Jeju Bank is currently generating about -0.16 per unit of risk. If you would invest 710,000 in Hanwha InvestmentSecurities Co on September 1, 2024 and sell it today you would earn a total of 2,000 from holding Hanwha InvestmentSecurities Co or generate 0.28% 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. Jeju Bank
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| Jeju Bank |
Hanwha InvestmentSecuri and Jeju Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and Jeju Bank
The main advantage of trading using opposite Hanwha InvestmentSecuri and Jeju Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, Jeju Bank 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 Jeju Bank will offset losses from the drop in Jeju Bank's long position.| Hanwha InvestmentSecuri vs. Solution Advanced Technology | Hanwha InvestmentSecuri vs. Busan Industrial Co | Hanwha InvestmentSecuri vs. Busan Ind | Hanwha InvestmentSecuri vs. Mirae Asset Daewoo |
| Jeju Bank vs. AptaBio Therapeutics | Jeju Bank vs. Daewoo SBI SPAC | Jeju Bank vs. Dream Security co | Jeju Bank vs. Microfriend |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |