Correlation Between JYP Entertainment and Hana Technology
Can any of the company-specific risk be diversified away by investing in both JYP Entertainment 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 JYP Entertainment and Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JYP Entertainment Corp and Hana Technology Co, you can compare the effects of market volatilities on JYP Entertainment 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 JYP Entertainment with a short position of Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JYP Entertainment and Hana Technology.
Diversification Opportunities for JYP Entertainment and Hana Technology
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JYP and Hana is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding JYP Entertainment Corp and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology and JYP Entertainment 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 JYP Entertainment Corp 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 JYP Entertainment i.e., JYP Entertainment and Hana Technology go up and down completely randomly.
Pair Corralation between JYP Entertainment and Hana Technology
Assuming the 90 days trading horizon JYP Entertainment is expected to generate 3.22 times less return on investment than Hana Technology. But when comparing it to its historical volatility, JYP Entertainment Corp is 1.93 times less risky than Hana Technology. It trades about 0.1 of its potential returns per unit of risk. Hana Technology Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,899,000 in Hana Technology Co on October 20, 2024 and sell it today you would earn a total of 361,000 from holding Hana Technology Co or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JYP Entertainment Corp vs. Hana Technology Co
Performance |
| Timeline |
| JYP Entertainment Corp |
| Hana Technology |
JYP Entertainment and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JYP Entertainment and Hana Technology
The main advantage of trading using opposite JYP Entertainment and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JYP Entertainment 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.| JYP Entertainment vs. Shinsegae Food | JYP Entertainment vs. Haitai Confectionery Foods | JYP Entertainment vs. FoodNamoo | JYP Entertainment vs. Youl Chon Chemical |
| Hana Technology vs. E Investment Development | Hana Technology vs. Woori Technology Investment | Hana Technology vs. KTB Investment Securities | Hana Technology vs. SV Investment |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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