Correlation Between InfoBank and Hanwha InvestmentSecuri
Can any of the company-specific risk be diversified away by investing in both InfoBank and Hanwha InvestmentSecuri 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 InfoBank and Hanwha InvestmentSecuri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfoBank and Hanwha InvestmentSecurities Co, you can compare the effects of market volatilities on InfoBank and Hanwha InvestmentSecuri 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 InfoBank with a short position of Hanwha InvestmentSecuri. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfoBank and Hanwha InvestmentSecuri.
Diversification Opportunities for InfoBank and Hanwha InvestmentSecuri
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InfoBank and Hanwha is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding InfoBank and Hanwha InvestmentSecurities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha InvestmentSecuri and InfoBank 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 InfoBank are associated (or correlated) with Hanwha InvestmentSecuri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha InvestmentSecuri has no effect on the direction of InfoBank i.e., InfoBank and Hanwha InvestmentSecuri go up and down completely randomly.
Pair Corralation between InfoBank and Hanwha InvestmentSecuri
Assuming the 90 days trading horizon InfoBank is expected to generate 0.66 times more return on investment than Hanwha InvestmentSecuri. However, InfoBank is 1.51 times less risky than Hanwha InvestmentSecuri. It trades about 0.22 of its potential returns per unit of risk. Hanwha InvestmentSecurities Co is currently generating about 0.07 per unit of risk. If you would invest 595,000 in InfoBank on August 29, 2024 and sell it today you would earn a total of 145,000 from holding InfoBank or generate 24.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InfoBank vs. Hanwha InvestmentSecurities Co
Performance |
| Timeline |
| InfoBank |
| Hanwha InvestmentSecuri |
InfoBank and Hanwha InvestmentSecuri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfoBank and Hanwha InvestmentSecuri
The main advantage of trading using opposite InfoBank and Hanwha InvestmentSecuri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfoBank position performs unexpectedly, Hanwha InvestmentSecuri 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 InvestmentSecuri will offset losses from the drop in Hanwha InvestmentSecuri's long position.| InfoBank vs. Daou Data Corp | InfoBank vs. Busan Industrial Co | InfoBank vs. Busan Ind | InfoBank vs. Shinhan WTI Futures |
| Hanwha InvestmentSecuri vs. Nh Investment And | Hanwha InvestmentSecuri vs. DSC Investment | Hanwha InvestmentSecuri vs. Busan Industrial Co | Hanwha InvestmentSecuri vs. Busan Ind |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |