Correlation Between Koryo Credit and Hanwha Life
Can any of the company-specific risk be diversified away by investing in both Koryo Credit 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 Koryo Credit and Hanwha Life 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 Hanwha Life Insurance, you can compare the effects of market volatilities on Koryo Credit 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 Koryo Credit with a short position of Hanwha Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Hanwha Life.
Diversification Opportunities for Koryo Credit and Hanwha Life
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koryo and Hanwha is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information 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 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 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 Koryo Credit i.e., Koryo Credit and Hanwha Life go up and down completely randomly.
Pair Corralation between Koryo Credit and Hanwha Life
Assuming the 90 days trading horizon Koryo Credit Information is expected to under-perform the Hanwha Life. But the stock apears to be less risky and, when comparing its historical volatility, Koryo Credit Information is 1.27 times less risky than Hanwha Life. The stock trades about -0.24 of its potential returns per unit of risk. The Hanwha Life Insurance is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 254,500 in Hanwha Life Insurance on October 25, 2024 and sell it today you would lose (5,500) from holding Hanwha Life Insurance or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koryo Credit Information vs. Hanwha Life Insurance
Performance |
| Timeline |
| Koryo Credit Information |
| Hanwha Life Insurance |
Koryo Credit and Hanwha Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Hanwha Life
The main advantage of trading using opposite Koryo Credit and Hanwha Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit 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.| Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. KB Financial Group | Koryo Credit vs. Shinhan Financial Group |
| Hanwha Life vs. Hanshin Construction Co | Hanwha Life vs. Lotte Non Life Insurance | Hanwha Life vs. Shinsegae Engineering Construction | Hanwha Life vs. Wireless Power Amplifier |
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.
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