Correlation Between Korea Investment and Hansol Chemica
Can any of the company-specific risk be diversified away by investing in both Korea Investment and Hansol Chemica 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 Korea Investment and Hansol Chemica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Investment Holdings and Hansol Chemica, you can compare the effects of market volatilities on Korea Investment and Hansol Chemica 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 Korea Investment with a short position of Hansol Chemica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Investment and Hansol Chemica.
Diversification Opportunities for Korea Investment and Hansol Chemica
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Korea and Hansol is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Korea Investment Holdings and Hansol Chemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Chemica and Korea Investment 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 Korea Investment Holdings are associated (or correlated) with Hansol Chemica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Chemica has no effect on the direction of Korea Investment i.e., Korea Investment and Hansol Chemica go up and down completely randomly.
Pair Corralation between Korea Investment and Hansol Chemica
Assuming the 90 days trading horizon Korea Investment Holdings is expected to generate 0.34 times more return on investment than Hansol Chemica. However, Korea Investment Holdings is 2.95 times less risky than Hansol Chemica. It trades about 0.01 of its potential returns per unit of risk. Hansol Chemica is currently generating about -0.26 per unit of risk. If you would invest 5,320,000 in Korea Investment Holdings on August 29, 2024 and sell it today you would earn a total of 10,000 from holding Korea Investment Holdings or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Korea Investment Holdings vs. Hansol Chemica
Performance |
| Timeline |
| Korea Investment Holdings |
| Hansol Chemica |
Korea Investment and Hansol Chemica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Investment and Hansol Chemica
The main advantage of trading using opposite Korea Investment and Hansol Chemica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Investment position performs unexpectedly, Hansol Chemica 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 Hansol Chemica will offset losses from the drop in Hansol Chemica's long position.| Korea Investment vs. AptaBio Therapeutics | Korea Investment vs. Daewoo SBI SPAC | Korea Investment vs. Dream Security co | Korea Investment vs. Microfriend |
| Hansol Chemica vs. Korea Investment Holdings | Hansol Chemica vs. Shinil Electronics Co | Hansol Chemica vs. Samwha Electronics Co | Hansol Chemica vs. Sangshin Electronics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |