Correlation Between Koryo Credit and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Koryo Credit and Hana Financial 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 Koryo Credit and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Hana Financial, you can compare the effects of market volatilities on Koryo Credit and Hana Financial 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 Koryo Credit with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Hana Financial.
Diversification Opportunities for Koryo Credit and Hana Financial
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Koryo and Hana is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial and Koryo Credit 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 Koryo Credit Information are associated (or correlated) with Hana Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Financial has no effect on the direction of Koryo Credit i.e., Koryo Credit and Hana Financial go up and down completely randomly.
Pair Corralation between Koryo Credit and Hana Financial
Assuming the 90 days trading horizon Koryo Credit Information is expected to generate 0.66 times more return on investment than Hana Financial. However, Koryo Credit Information is 1.52 times less risky than Hana Financial. It trades about 0.17 of its potential returns per unit of risk. Hana Financial is currently generating about -0.03 per unit of risk. If you would invest 973,000 in Koryo Credit Information on August 30, 2024 and sell it today you would earn a total of 44,000 from holding Koryo Credit Information or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Hana Financial
Performance |
| Timeline |
| Koryo Credit Information |
| Hana Financial |
Koryo Credit and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Hana Financial
The main advantage of trading using opposite Koryo Credit and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit position performs unexpectedly, Hana Financial 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 Financial will offset losses from the drop in Hana Financial's long position.| Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. KB Financial Group | Koryo Credit vs. Shinhan Financial Group |
| Hana Financial vs. Cube Entertainment | Hana Financial vs. Dreamus Company | Hana Financial vs. LG Energy Solution | Hana Financial vs. Dongwon System |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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