Correlation Between Hana Financial and Samlip General
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Samlip General 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 Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Samlip General Foods, you can compare the effects of market volatilities on Hana Financial and Samlip General 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 Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Samlip General.
Diversification Opportunities for Hana Financial and Samlip General
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and Samlip is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods 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 Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Hana Financial i.e., Hana Financial and Samlip General go up and down completely randomly.
Pair Corralation between Hana Financial and Samlip General
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.44 times more return on investment than Samlip General. However, Hana Financial is 1.44 times more volatile than Samlip General Foods. It trades about 0.06 of its potential returns per unit of risk. Samlip General Foods is currently generating about -0.03 per unit of risk. If you would invest 3,679,301 in Hana Financial on December 4, 2024 and sell it today you would earn a total of 2,270,699 from holding Hana Financial or generate 61.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. Samlip General Foods
Performance |
| Timeline |
| Hana Financial |
| Samlip General Foods |
Hana Financial and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Samlip General
The main advantage of trading using opposite Hana Financial and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Hana Financial vs. Cots Technology Co | Hana Financial vs. Guyoung Technology Co | Hana Financial vs. CJ Seafood Corp | Hana Financial vs. Sam Yang Foods |
| Samlip General vs. Yura Tech Co | Samlip General vs. Jeju Beer Co | Samlip General vs. Spolytech Co | Samlip General vs. Cots Technology 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance |