Correlation Between Stic Investments and Hana Technology
Can any of the company-specific risk be diversified away by investing in both Stic Investments 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 Stic Investments and Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and Hana Technology Co, you can compare the effects of market volatilities on Stic Investments 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 Stic Investments with a short position of Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and Hana Technology.
Diversification Opportunities for Stic Investments and Hana Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stic and Hana is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology and Stic Investments 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 Stic Investments 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 Stic Investments i.e., Stic Investments and Hana Technology go up and down completely randomly.
Pair Corralation between Stic Investments and Hana Technology
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.66 times more return on investment than Hana Technology. However, Stic Investments is 1.51 times less risky than Hana Technology. It trades about 0.05 of its potential returns per unit of risk. Hana Technology Co is currently generating about -0.13 per unit of risk. If you would invest 637,725 in Stic Investments on August 26, 2024 and sell it today you would earn a total of 142,275 from holding Stic Investments or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. Hana Technology Co
Performance |
| Timeline |
| Stic Investments |
| Hana Technology |
Stic Investments and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and Hana Technology
The main advantage of trading using opposite Stic Investments and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments 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.| Stic Investments vs. Korea Real Estate | Stic Investments vs. Korea Ratings Co | Stic Investments vs. IQuest Co | Stic Investments vs. Wonbang Tech Co |
| Hana Technology vs. Rainbow Robotics | Hana Technology vs. COWINTECH Co | Hana Technology vs. CS BEARING CoLtd | Hana Technology vs. DAEMO Engineering 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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