Correlation Between Hana Financial and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Golden Bridge 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 Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Golden Bridge Investment, you can compare the effects of market volatilities on Hana Financial and Golden Bridge 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 Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Golden Bridge.
Diversification Opportunities for Hana Financial and Golden Bridge
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Golden is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Golden Bridge Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Bridge 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 Golden Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Bridge Investment has no effect on the direction of Hana Financial i.e., Hana Financial and Golden Bridge go up and down completely randomly.
Pair Corralation between Hana Financial and Golden Bridge
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.28 times more return on investment than Golden Bridge. However, Hana Financial is 1.28 times more volatile than Golden Bridge Investment. It trades about 0.38 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.05 per unit of risk. If you would invest 5,700,000 in Hana Financial on November 4, 2024 and sell it today you would earn a total of 350,000 from holding Hana Financial or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. Golden Bridge Investment
Performance |
| Timeline |
| Hana Financial |
| Golden Bridge Investment |
Hana Financial and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Golden Bridge
The main advantage of trading using opposite Hana Financial and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Golden Bridge 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 Golden Bridge will offset losses from the drop in Golden Bridge's long position.| Hana Financial vs. Barunson Entertainment Arts | Hana Financial vs. Polaris Office Corp | Hana Financial vs. Golden Bridge Investment | Hana Financial vs. Hyundai Home Shopping |
| Golden Bridge vs. ADTechnology CoLtd | Golden Bridge vs. Digital Imaging Technology | Golden Bridge vs. Ilji Technology Co | Golden Bridge vs. Solution Advanced Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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