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
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and Samlip is -0.4. 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 0.3 times more return on investment than Samlip General. However, Hana Financial is 3.29 times less risky than Samlip General. It trades about 0.3 of its potential returns per unit of risk. Samlip General Foods is currently generating about -0.13 per unit of risk. If you would invest 5,680,000 in Hana Financial on October 29, 2024 and sell it today you would earn a total of 240,000 from holding Hana Financial or generate 4.23% 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. Dongbang Transport Logistics | Hana Financial vs. Seoyon Topmetal Co | Hana Financial vs. Inzi Display CoLtd | Hana Financial vs. Asiana Airlines |
| Samlip General vs. DoubleU Games Co | Samlip General vs. Sung Bo Chemicals | Samlip General vs. Kyeryong Construction Industrial | Samlip General vs. LG Chemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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