Correlation Between Hana Financial and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Daelim Trading 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 Daelim Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Daelim Trading Co, you can compare the effects of market volatilities on Hana Financial and Daelim Trading 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 Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Daelim Trading.
Diversification Opportunities for Hana Financial and Daelim Trading
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and Daelim is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading 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 Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of Hana Financial i.e., Hana Financial and Daelim Trading go up and down completely randomly.
Pair Corralation between Hana Financial and Daelim Trading
Assuming the 90 days trading horizon Hana Financial is expected to generate 0.99 times more return on investment than Daelim Trading. However, Hana Financial is 1.01 times less risky than Daelim Trading. It trades about 0.06 of its potential returns per unit of risk. Daelim Trading Co is currently generating about -0.02 per unit of risk. If you would invest 3,945,436 in Hana Financial on September 3, 2024 and sell it today you would earn a total of 2,294,564 from holding Hana Financial or generate 58.16% 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. Daelim Trading Co
Performance |
| Timeline |
| Hana Financial |
| Daelim Trading |
Hana Financial and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Daelim Trading
The main advantage of trading using opposite Hana Financial and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| Hana Financial vs. Eagon Industrial Co | Hana Financial vs. Daishin Information Communications | Hana Financial vs. Haesung Industrial Co | Hana Financial vs. Namhwa Industrial Co |
| Daelim Trading vs. Daishin Information Communications | Daelim Trading vs. Hana Financial | Daelim Trading vs. Automobile Pc | Daelim Trading vs. KakaoBank Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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