Correlation Between A Tech and Hanjoo Light
Can any of the company-specific risk be diversified away by investing in both A Tech and Hanjoo Light 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 A Tech and Hanjoo Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Tech Solution Co and Hanjoo Light Metal, you can compare the effects of market volatilities on A Tech and Hanjoo Light 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 A Tech with a short position of Hanjoo Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Tech and Hanjoo Light.
Diversification Opportunities for A Tech and Hanjoo Light
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 071670 and Hanjoo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding A Tech Solution Co and Hanjoo Light Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjoo Light Metal and A 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 A Tech Solution Co are associated (or correlated) with Hanjoo Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjoo Light Metal has no effect on the direction of A Tech i.e., A Tech and Hanjoo Light go up and down completely randomly.
Pair Corralation between A Tech and Hanjoo Light
Assuming the 90 days trading horizon A Tech Solution Co is expected to under-perform the Hanjoo Light. In addition to that, A Tech is 1.36 times more volatile than Hanjoo Light Metal. It trades about -0.07 of its total potential returns per unit of risk. Hanjoo Light Metal is currently generating about 0.18 per unit of volatility. If you would invest 79,000 in Hanjoo Light Metal on November 3, 2024 and sell it today you would earn a total of 3,100 from holding Hanjoo Light Metal or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
A Tech Solution Co vs. Hanjoo Light Metal
Performance |
| Timeline |
| A Tech Solution |
| Hanjoo Light Metal |
A Tech and Hanjoo Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A Tech and Hanjoo Light
The main advantage of trading using opposite A Tech and Hanjoo Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Tech position performs unexpectedly, Hanjoo Light 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 Hanjoo Light will offset losses from the drop in Hanjoo Light's long position.| A Tech vs. Samsung Card Co | A Tech vs. EBEST Investment Securities | A Tech vs. Koh Young Technology | A Tech vs. Hansol Chemica |
| Hanjoo Light vs. Samyoung Electronics Co | Hanjoo Light vs. SungMoon Electronics Co | Hanjoo Light vs. Vissem Electronics Co | Hanjoo Light vs. Sungmoon 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |