Correlation Between Kisan Telecom and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom 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 Kisan Telecom and Hana Financial 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 Hana Financial, you can compare the effects of market volatilities on Kisan Telecom 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 Kisan Telecom with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Hana Financial.
Diversification Opportunities for Kisan Telecom and Hana Financial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kisan and Hana is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial 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 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 Kisan Telecom i.e., Kisan Telecom and Hana Financial go up and down completely randomly.
Pair Corralation between Kisan Telecom and Hana Financial
Assuming the 90 days trading horizon Kisan Telecom Co is expected to under-perform the Hana Financial. In addition to that, Kisan Telecom is 1.16 times more volatile than Hana Financial. It trades about -0.04 of its total potential returns per unit of risk. Hana Financial is currently generating about 0.03 per unit of volatility. If you would invest 4,726,489 in Hana Financial on October 16, 2024 and sell it today you would earn a total of 1,133,511 from holding Hana Financial or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. Hana Financial
Performance |
| Timeline |
| Kisan Telecom |
| Hana Financial |
Kisan Telecom and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Hana Financial
The main advantage of trading using opposite Kisan Telecom and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom 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.| Kisan Telecom vs. Display Tech Co | Kisan Telecom vs. Dongbang Transport Logistics | Kisan Telecom vs. CKH Food Health | Kisan Telecom vs. Taegu Broadcasting |
| Hana Financial vs. Korea Air Svc | Hana Financial vs. Lotte Chilsung Beverage | Hana Financial vs. GS Retail Co | Hana Financial vs. Kisan Telecom 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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