Correlation Between Pureun Mutual and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Hana Financial 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 Pureun Mutual and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and Hana Financial, you can compare the effects of market volatilities on Pureun Mutual and Hana Financial 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 Pureun Mutual with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Hana Financial.
Diversification Opportunities for Pureun Mutual and Hana Financial
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pureun and Hana is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial and Pureun Mutual 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 Pureun Mutual Savings are associated (or correlated) with Hana Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Financial has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Hana Financial go up and down completely randomly.
Pair Corralation between Pureun Mutual and Hana Financial
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.85 times more return on investment than Hana Financial. However, Pureun Mutual Savings is 1.18 times less risky than Hana Financial. It trades about 0.02 of its potential returns per unit of risk. Hana Financial is currently generating about -0.02 per unit of risk. If you would invest 809,193 in Pureun Mutual Savings on November 2, 2024 and sell it today you would earn a total of 10,807 from holding Pureun Mutual Savings or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Hana Financial
Performance |
| Timeline |
| Pureun Mutual Savings |
| Hana Financial |
Pureun Mutual and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Hana Financial
The main advantage of trading using opposite Pureun Mutual and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Hana Financial 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 Financial will offset losses from the drop in Hana Financial's long position.| Pureun Mutual vs. Dongbang Ship Machinery | Pureun Mutual vs. Shinsegae Engineering Construction | Pureun Mutual vs. Tamul Multimedia Co | Pureun Mutual vs. Tuksu Engineering ConstructionLtd |
| Hana Financial vs. Lotte Data Communication | Hana Financial vs. Mgame Corp | Hana Financial vs. Sangsin Energy Display | Hana Financial vs. CG Hi Tech |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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