Correlation Between GS Engineering and Hana Technology
Can any of the company-specific risk be diversified away by investing in both GS Engineering and Hana Technology 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 GS Engineering and Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Engineering Construction and Hana Technology Co, you can compare the effects of market volatilities on GS Engineering and Hana Technology 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 GS Engineering with a short position of Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Engineering and Hana Technology.
Diversification Opportunities for GS Engineering and Hana Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between 006360 and Hana is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding GS Engineering Construction and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology and GS Engineering 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 GS Engineering Construction are associated (or correlated) with Hana Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Technology has no effect on the direction of GS Engineering i.e., GS Engineering and Hana Technology go up and down completely randomly.
Pair Corralation between GS Engineering and Hana Technology
Assuming the 90 days trading horizon GS Engineering Construction is expected to generate 0.51 times more return on investment than Hana Technology. However, GS Engineering Construction is 1.97 times less risky than Hana Technology. It trades about 0.19 of its potential returns per unit of risk. Hana Technology Co is currently generating about -0.41 per unit of risk. If you would invest 1,770,000 in GS Engineering Construction on September 4, 2024 and sell it today you would earn a total of 158,000 from holding GS Engineering Construction or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GS Engineering Construction vs. Hana Technology Co
Performance |
| Timeline |
| GS Engineering Const |
| Hana Technology |
GS Engineering and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GS Engineering and Hana Technology
The main advantage of trading using opposite GS Engineering and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Engineering position performs unexpectedly, Hana Technology 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 Hana Technology will offset losses from the drop in Hana Technology's long position.| GS Engineering vs. AptaBio Therapeutics | GS Engineering vs. Daewoo SBI SPAC | GS Engineering vs. Dream Security co | GS Engineering vs. Microfriend |
| Hana Technology vs. Duksan Hi Metal | Hana Technology vs. Daou Technology | Hana Technology vs. Kukil Metal Co | Hana Technology vs. Dongil Metal 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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