Correlation Between Hana Financial and Sangsangin Investment
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Sangsangin Investment 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 Hana Financial and Sangsangin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Sangsangin Investment Securities, you can compare the effects of market volatilities on Hana Financial and Sangsangin Investment 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 Hana Financial with a short position of Sangsangin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Sangsangin Investment.
Diversification Opportunities for Hana Financial and Sangsangin Investment
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hana and Sangsangin is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Sangsangin Investment Securiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangsangin Investment and Hana Financial 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 Hana Financial are associated (or correlated) with Sangsangin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangsangin Investment has no effect on the direction of Hana Financial i.e., Hana Financial and Sangsangin Investment go up and down completely randomly.
Pair Corralation between Hana Financial and Sangsangin Investment
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.12 times more return on investment than Sangsangin Investment. However, Hana Financial is 1.12 times more volatile than Sangsangin Investment Securities. It trades about 0.05 of its potential returns per unit of risk. Sangsangin Investment Securities is currently generating about -0.06 per unit of risk. If you would invest 3,856,057 in Hana Financial on September 12, 2024 and sell it today you would earn a total of 1,873,943 from holding Hana Financial or generate 48.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. Sangsangin Investment Securiti
Performance |
| Timeline |
| Hana Financial |
| Sangsangin Investment |
Hana Financial and Sangsangin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Sangsangin Investment
The main advantage of trading using opposite Hana Financial and Sangsangin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Sangsangin Investment 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 Sangsangin Investment will offset losses from the drop in Sangsangin Investment's long position.| Hana Financial vs. KB Financial Group | Hana Financial vs. Shinhan Financial Group | Hana Financial vs. Woori Financial Group | Hana Financial vs. Samsung Electronics Co |
| Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group | Sangsangin Investment vs. Hana Financial | Sangsangin Investment vs. Woori Financial Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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