Correlation Between Yura Tech and Hanwha Solutions
Can any of the company-specific risk be diversified away by investing in both Yura Tech and Hanwha Solutions 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 Yura Tech and Hanwha Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yura Tech Co and Hanwha Solutions, you can compare the effects of market volatilities on Yura Tech and Hanwha Solutions 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 Yura Tech with a short position of Hanwha Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yura Tech and Hanwha Solutions.
Diversification Opportunities for Yura Tech and Hanwha Solutions
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yura and Hanwha is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Yura Tech Co and Hanwha Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Solutions and Yura Tech 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 Yura Tech Co are associated (or correlated) with Hanwha Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Solutions has no effect on the direction of Yura Tech i.e., Yura Tech and Hanwha Solutions go up and down completely randomly.
Pair Corralation between Yura Tech and Hanwha Solutions
Assuming the 90 days trading horizon Yura Tech is expected to generate 5.76 times less return on investment than Hanwha Solutions. But when comparing it to its historical volatility, Yura Tech Co is 2.78 times less risky than Hanwha Solutions. It trades about 0.07 of its potential returns per unit of risk. Hanwha Solutions is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,788,000 in Hanwha Solutions on November 4, 2024 and sell it today you would earn a total of 189,000 from holding Hanwha Solutions or generate 10.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yura Tech Co vs. Hanwha Solutions
Performance |
| Timeline |
| Yura Tech |
| Hanwha Solutions |
Yura Tech and Hanwha Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yura Tech and Hanwha Solutions
The main advantage of trading using opposite Yura Tech and Hanwha Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yura Tech position performs unexpectedly, Hanwha Solutions 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 Solutions will offset losses from the drop in Hanwha Solutions' long position.| Yura Tech vs. Seah Steel Corp | Yura Tech vs. Daehan Steel | Yura Tech vs. FoodNamoo | Yura Tech vs. Hankook Steel Co |
| Hanwha Solutions vs. SKONEC Entertainment Co | Hanwha Solutions vs. ChipsMedia | Hanwha Solutions vs. JYP Entertainment Corp | Hanwha Solutions vs. Hankook Furniture 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |