Correlation Between Daelim Trading and Hanwha Life
Can any of the company-specific risk be diversified away by investing in both Daelim Trading and Hanwha Life 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 Daelim Trading and Hanwha Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daelim Trading Co and Hanwha Life Insurance, you can compare the effects of market volatilities on Daelim Trading and Hanwha Life 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 Daelim Trading with a short position of Hanwha Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daelim Trading and Hanwha Life.
Diversification Opportunities for Daelim Trading and Hanwha Life
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daelim and Hanwha is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Daelim Trading Co and Hanwha Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Life Insurance and Daelim Trading 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 Daelim Trading Co are associated (or correlated) with Hanwha Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Life Insurance has no effect on the direction of Daelim Trading i.e., Daelim Trading and Hanwha Life go up and down completely randomly.
Pair Corralation between Daelim Trading and Hanwha Life
Assuming the 90 days trading horizon Daelim Trading Co is expected to under-perform the Hanwha Life. In addition to that, Daelim Trading is 1.84 times more volatile than Hanwha Life Insurance. It trades about -0.01 of its total potential returns per unit of risk. Hanwha Life Insurance is currently generating about 0.15 per unit of volatility. If you would invest 244,500 in Hanwha Life Insurance on November 3, 2024 and sell it today you would earn a total of 5,000 from holding Hanwha Life Insurance or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daelim Trading Co vs. Hanwha Life Insurance
Performance |
| Timeline |
| Daelim Trading |
| Hanwha Life Insurance |
Daelim Trading and Hanwha Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daelim Trading and Hanwha Life
The main advantage of trading using opposite Daelim Trading and Hanwha Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daelim Trading position performs unexpectedly, Hanwha Life 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 Hanwha Life will offset losses from the drop in Hanwha Life's long position.| Daelim Trading vs. AptaBio Therapeutics | Daelim Trading vs. Daewoo SBI SPAC | Daelim Trading vs. Dream Security co | Daelim Trading vs. Microfriend |
| Hanwha Life vs. AptaBio Therapeutics | Hanwha Life vs. Daewoo SBI SPAC | Hanwha Life vs. Dream Security co | Hanwha Life 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |