Correlation Between Kisan Telecom and Hanwha Solutions
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Hanwha Solutions 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 Kisan Telecom and Hanwha Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kisan Telecom Co and Hanwha Solutions, you can compare the effects of market volatilities on Kisan Telecom and Hanwha Solutions 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 Kisan Telecom with a short position of Hanwha Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Hanwha Solutions.
Diversification Opportunities for Kisan Telecom and Hanwha Solutions
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kisan and Hanwha is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Hanwha Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Solutions and Kisan Telecom 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 Kisan Telecom Co are associated (or correlated) with Hanwha Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Solutions has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Hanwha Solutions go up and down completely randomly.
Pair Corralation between Kisan Telecom and Hanwha Solutions
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 2.57 times more return on investment than Hanwha Solutions. However, Kisan Telecom is 2.57 times more volatile than Hanwha Solutions. It trades about 0.14 of its potential returns per unit of risk. Hanwha Solutions is currently generating about 0.1 per unit of risk. If you would invest 180,400 in Kisan Telecom Co on November 27, 2024 and sell it today you would earn a total of 27,100 from holding Kisan Telecom Co or generate 15.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. Hanwha Solutions
Performance |
| Timeline |
| Kisan Telecom |
| Hanwha Solutions |
Kisan Telecom and Hanwha Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Hanwha Solutions
The main advantage of trading using opposite Kisan Telecom and Hanwha Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Hanwha Solutions 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 Hanwha Solutions will offset losses from the drop in Hanwha Solutions' long position.| Kisan Telecom vs. SV Investment | Kisan Telecom vs. PJ Electronics Co | Kisan Telecom vs. SBI Investment KOREA | Kisan Telecom vs. Vissem Electronics Co |
| Hanwha Solutions vs. Orbitech Co | Hanwha Solutions vs. Inzi Display CoLtd | Hanwha Solutions vs. RFTech Co | Hanwha Solutions vs. LG Display 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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