Correlation Between Hanwha Solutions and Playgram
Can any of the company-specific risk be diversified away by investing in both Hanwha Solutions and Playgram 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 Solutions and Playgram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanwha Solutions and Playgram Co, you can compare the effects of market volatilities on Hanwha Solutions and Playgram 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 Solutions with a short position of Playgram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha Solutions and Playgram.
Diversification Opportunities for Hanwha Solutions and Playgram
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hanwha and Playgram is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha Solutions and Playgram Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playgram and Hanwha Solutions 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 Solutions are associated (or correlated) with Playgram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playgram has no effect on the direction of Hanwha Solutions i.e., Hanwha Solutions and Playgram go up and down completely randomly.
Pair Corralation between Hanwha Solutions and Playgram
Assuming the 90 days trading horizon Hanwha Solutions is expected to generate 1.64 times more return on investment than Playgram. However, Hanwha Solutions is 1.64 times more volatile than Playgram Co. It trades about 0.26 of its potential returns per unit of risk. Playgram Co is currently generating about 0.1 per unit of risk. If you would invest 1,584,000 in Hanwha Solutions on October 25, 2024 and sell it today you would earn a total of 395,000 from holding Hanwha Solutions or generate 24.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanwha Solutions vs. Playgram Co
Performance |
| Timeline |
| Hanwha Solutions |
| Playgram |
Hanwha Solutions and Playgram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha Solutions and Playgram
The main advantage of trading using opposite Hanwha Solutions and Playgram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha Solutions position performs unexpectedly, Playgram 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 Playgram will offset losses from the drop in Playgram's long position.| Hanwha Solutions vs. KTB Investment Securities | Hanwha Solutions vs. Samsung Publishing Co | Hanwha Solutions vs. Nice Information Telecommunication | Hanwha Solutions vs. EBEST Investment Securities |
| Playgram vs. LG Chemicals | Playgram vs. POSCO Holdings | Playgram vs. Hanwha Solutions | Playgram vs. Lotte Chemical Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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