Correlation Between Hana Financial and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Samyoung Electronics 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 Samyoung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Samyoung Electronics Co, you can compare the effects of market volatilities on Hana Financial and Samyoung Electronics 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 Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Samyoung Electronics.
Diversification Opportunities for Hana Financial and Samyoung Electronics
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and Samyoung is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics 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 Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Hana Financial i.e., Hana Financial and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Hana Financial and Samyoung Electronics
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.32 times more return on investment than Samyoung Electronics. However, Hana Financial is 1.32 times more volatile than Samyoung Electronics Co. It trades about 0.03 of its potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.02 per unit of risk. If you would invest 4,726,489 in Hana Financial on October 14, 2024 and sell it today you would earn a total of 1,133,511 from holding Hana Financial or generate 23.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. Samyoung Electronics Co
Performance |
| Timeline |
| Hana Financial |
| Samyoung Electronics |
Hana Financial and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Samyoung Electronics
The main advantage of trading using opposite Hana Financial and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Samyoung Electronics 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Hana Financial vs. V One Tech Co | Hana Financial vs. Daishin Information Communications | Hana Financial vs. Lion Chemtech Co | Hana Financial vs. PH Tech Co |
| Samyoung Electronics vs. Hana Financial | Samyoung Electronics vs. Mobile Appliance | Samyoung Electronics vs. Industrial Bank | Samyoung Electronics vs. Lotte Non Life Insurance |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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