Correlation Between Inzi Display and Hana Technology
Can any of the company-specific risk be diversified away by investing in both Inzi Display 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 Inzi Display and Hana Technology 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 Hana Technology Co, you can compare the effects of market volatilities on Inzi Display 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 Inzi Display with a short position of Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Hana Technology.
Diversification Opportunities for Inzi Display and Hana Technology
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inzi and Hana is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology 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 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 Inzi Display i.e., Inzi Display and Hana Technology go up and down completely randomly.
Pair Corralation between Inzi Display and Hana Technology
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 0.53 times more return on investment than Hana Technology. However, Inzi Display CoLtd is 1.87 times less risky than Hana Technology. It trades about -0.07 of its potential returns per unit of risk. Hana Technology Co is currently generating about -0.07 per unit of risk. If you would invest 202,000 in Inzi Display CoLtd on November 3, 2024 and sell it today you would lose (66,300) from holding Inzi Display CoLtd or give up 32.82% 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. Hana Technology Co
Performance |
| Timeline |
| Inzi Display CoLtd |
| Hana Technology |
Inzi Display and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Hana Technology
The main advantage of trading using opposite Inzi Display and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display 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.| Inzi Display vs. BGF Retail Co | Inzi Display vs. Nasmedia Co | Inzi Display vs. Jeju Air Co | Inzi Display vs. Kaonmedia Co |
| Hana Technology vs. Youngchang Chemical Co | Hana Technology vs. Dongnam Chemical Co | Hana Technology vs. Lotte Fine Chemical | Hana Technology vs. Kukdong Oil Chemicals |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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