Correlation Between Hanwha InvestmentSecuri and Seoam Machinery
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and Seoam Machinery 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 Seoam Machinery 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 Seoam Machinery Industry, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and Seoam Machinery 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 Seoam Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and Seoam Machinery.
Diversification Opportunities for Hanwha InvestmentSecuri and Seoam Machinery
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanwha and Seoam is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and Seoam Machinery Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seoam Machinery Industry 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 Seoam Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seoam Machinery Industry has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and Seoam Machinery go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and Seoam Machinery
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to generate 2.63 times more return on investment than Seoam Machinery. However, Hanwha InvestmentSecuri is 2.63 times more volatile than Seoam Machinery Industry. It trades about 0.07 of its potential returns per unit of risk. Seoam Machinery Industry is currently generating about -0.02 per unit of risk. If you would invest 640,000 in Hanwha InvestmentSecurities Co on September 3, 2024 and sell it today you would earn a total of 72,000 from holding Hanwha InvestmentSecurities Co or generate 11.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanwha InvestmentSecurities Co vs. Seoam Machinery Industry
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| Seoam Machinery Industry |
Hanwha InvestmentSecuri and Seoam Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and Seoam Machinery
The main advantage of trading using opposite Hanwha InvestmentSecuri and Seoam Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, Seoam Machinery 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 Seoam Machinery will offset losses from the drop in Seoam Machinery's long position.| Hanwha InvestmentSecuri vs. Nh Investment And | Hanwha InvestmentSecuri vs. Samsung Special Purpose | Hanwha InvestmentSecuri vs. YeSUN Tech CoLtd |
| Seoam Machinery vs. KyungIn Electronics Co | Seoam Machinery vs. Dongbang Transport Logistics | Seoam Machinery vs. Hanjin Transportation Co | Seoam Machinery vs. Shinil Electronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |