Correlation Between SK Holdings and Hana Financial
Can any of the company-specific risk be diversified away by investing in both SK Holdings 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 SK Holdings and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SK Holdings Co and Hana Financial 7, you can compare the effects of market volatilities on SK Holdings 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 SK Holdings with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SK Holdings and Hana Financial.
Diversification Opportunities for SK Holdings and Hana Financial
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 034730 and Hana is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding SK Holdings Co and Hana Financial 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial 7 and SK Holdings 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 SK Holdings 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 7 has no effect on the direction of SK Holdings i.e., SK Holdings and Hana Financial go up and down completely randomly.
Pair Corralation between SK Holdings and Hana Financial
Assuming the 90 days trading horizon SK Holdings Co is expected to generate 0.63 times more return on investment than Hana Financial. However, SK Holdings Co is 1.59 times less risky than Hana Financial. It trades about -0.01 of its potential returns per unit of risk. Hana Financial 7 is currently generating about -0.02 per unit of risk. If you would invest 18,703,700 in SK Holdings Co on October 16, 2024 and sell it today you would lose (4,353,700) from holding SK Holdings Co or give up 23.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SK Holdings Co vs. Hana Financial 7
Performance |
| Timeline |
| SK Holdings |
| Hana Financial 7 |
SK Holdings and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SK Holdings and Hana Financial
The main advantage of trading using opposite SK Holdings and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SK Holdings 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.| SK Holdings vs. Daishin Information Communications | SK Holdings vs. SBI Investment KOREA | SK Holdings vs. Nh Investment And | SK Holdings vs. Daelim Trading Co |
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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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