Correlation Between Seoyon Topmetal and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Seoyon Topmetal 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 Seoyon Topmetal and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seoyon Topmetal Co and Hana Financial, you can compare the effects of market volatilities on Seoyon Topmetal 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 Seoyon Topmetal with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seoyon Topmetal and Hana Financial.
Diversification Opportunities for Seoyon Topmetal and Hana Financial
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seoyon and Hana is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Seoyon Topmetal Co and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial and Seoyon Topmetal 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 Seoyon Topmetal Co 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 Seoyon Topmetal i.e., Seoyon Topmetal and Hana Financial go up and down completely randomly.
Pair Corralation between Seoyon Topmetal and Hana Financial
Assuming the 90 days trading horizon Seoyon Topmetal Co is expected to generate 1.71 times more return on investment than Hana Financial. However, Seoyon Topmetal is 1.71 times more volatile than Hana Financial. It trades about 0.24 of its potential returns per unit of risk. Hana Financial is currently generating about 0.3 per unit of risk. If you would invest 339,000 in Seoyon Topmetal Co on October 29, 2024 and sell it today you would earn a total of 19,500 from holding Seoyon Topmetal Co or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seoyon Topmetal Co vs. Hana Financial
Performance |
| Timeline |
| Seoyon Topmetal |
| Hana Financial |
Seoyon Topmetal and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seoyon Topmetal and Hana Financial
The main advantage of trading using opposite Seoyon Topmetal and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seoyon Topmetal 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.| Seoyon Topmetal vs. Samlip General Foods | Seoyon Topmetal vs. ISU Chemical Co | Seoyon Topmetal vs. Daejung Chemicals Metals | Seoyon Topmetal vs. Hankukpackage Co |
| Hana Financial vs. Dongbang Transport Logistics | Hana Financial vs. Seoyon Topmetal Co | Hana Financial vs. Inzi Display CoLtd | Hana Financial vs. Asiana Airlines |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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