Correlation Between Com2uS and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Com2uS 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 Com2uS and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com2uS and Hana Financial 7, you can compare the effects of market volatilities on Com2uS 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 Com2uS with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com2uS and Hana Financial.
Diversification Opportunities for Com2uS and Hana Financial
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Com2uS and Hana is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Com2uS and Hana Financial 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial 7 and Com2uS 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 Com2uS 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 7 has no effect on the direction of Com2uS i.e., Com2uS and Hana Financial go up and down completely randomly.
Pair Corralation between Com2uS and Hana Financial
Assuming the 90 days trading horizon Com2uS is expected to generate 0.69 times more return on investment than Hana Financial. However, Com2uS is 1.44 times less risky than Hana Financial. It trades about 0.03 of its potential returns per unit of risk. Hana Financial 7 is currently generating about 0.0 per unit of risk. If you would invest 4,552,394 in Com2uS on September 20, 2024 and sell it today you would earn a total of 407,606 from holding Com2uS or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Com2uS vs. Hana Financial 7
Performance |
| Timeline |
| Com2uS |
| Hana Financial 7 |
Com2uS and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com2uS and Hana Financial
The main advantage of trading using opposite Com2uS and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com2uS 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.The idea behind Com2uS and Hana Financial 7 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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