Correlation Between Inzi Display and Hanwha Life
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Hanwha Life 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 Inzi Display and Hanwha Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and Hanwha Life Insurance, you can compare the effects of market volatilities on Inzi Display and Hanwha Life 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 Inzi Display with a short position of Hanwha Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Hanwha Life.
Diversification Opportunities for Inzi Display and Hanwha Life
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inzi and Hanwha is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Hanwha Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Life Insurance and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with Hanwha Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Life Insurance has no effect on the direction of Inzi Display i.e., Inzi Display and Hanwha Life go up and down completely randomly.
Pair Corralation between Inzi Display and Hanwha Life
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to under-perform the Hanwha Life. In addition to that, Inzi Display is 1.83 times more volatile than Hanwha Life Insurance. It trades about -0.28 of its total potential returns per unit of risk. Hanwha Life Insurance is currently generating about -0.04 per unit of volatility. If you would invest 250,500 in Hanwha Life Insurance on November 7, 2024 and sell it today you would lose (1,000.00) from holding Hanwha Life Insurance or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Hanwha Life Insurance
Performance |
| Timeline |
| Inzi Display CoLtd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hanwha Life Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inzi Display and Hanwha Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Hanwha Life
The main advantage of trading using opposite Inzi Display and Hanwha Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Hanwha Life 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 Life will offset losses from the drop in Hanwha Life's long position.| Inzi Display vs. Samsung Electronics Co | Inzi Display vs. Hyundai Motor Co | Inzi Display vs. LG Electronics |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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