Correlation Between Hanwha InvestmentSecuri and Genic
Can any of the company-specific risk be diversified away by investing in both Hanwha InvestmentSecuri and Genic 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 Genic 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 Genic Co, you can compare the effects of market volatilities on Hanwha InvestmentSecuri and Genic 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 Genic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha InvestmentSecuri and Genic.
Diversification Opportunities for Hanwha InvestmentSecuri and Genic
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanwha and Genic is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha InvestmentSecurities Co and Genic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genic 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 Genic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genic has no effect on the direction of Hanwha InvestmentSecuri i.e., Hanwha InvestmentSecuri and Genic go up and down completely randomly.
Pair Corralation between Hanwha InvestmentSecuri and Genic
Assuming the 90 days trading horizon Hanwha InvestmentSecurities Co is expected to under-perform the Genic. But the stock apears to be less risky and, when comparing its historical volatility, Hanwha InvestmentSecurities Co is 1.74 times less risky than Genic. The stock trades about -0.06 of its potential returns per unit of risk. The Genic Co is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,934,000 in Genic Co on October 13, 2024 and sell it today you would earn a total of 781,000 from holding Genic Co or generate 40.38% 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. Genic Co
Performance |
| Timeline |
| Hanwha InvestmentSecuri |
| Genic |
Hanwha InvestmentSecuri and Genic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha InvestmentSecuri and Genic
The main advantage of trading using opposite Hanwha InvestmentSecuri and Genic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha InvestmentSecuri position performs unexpectedly, Genic 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 Genic will offset losses from the drop in Genic's long position.| Hanwha InvestmentSecuri vs. Nh Investment And | Hanwha InvestmentSecuri vs. DSC Investment | Hanwha InvestmentSecuri vs. Busan Industrial Co | Hanwha InvestmentSecuri vs. Busan Ind |
| Genic vs. Nh Investment And | Genic vs. DB Financial Investment | Genic vs. Korean Drug Co | Genic vs. NH Investment Securities |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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