Correlation Between Hana Financial and Daeduck Electronics
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Daeduck 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 Daeduck 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 Daeduck Electronics Co, you can compare the effects of market volatilities on Hana Financial and Daeduck 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 Daeduck Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Daeduck Electronics.
Diversification Opportunities for Hana Financial and Daeduck Electronics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hana and Daeduck is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Daeduck Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daeduck 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 Daeduck Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daeduck Electronics has no effect on the direction of Hana Financial i.e., Hana Financial and Daeduck Electronics go up and down completely randomly.
Pair Corralation between Hana Financial and Daeduck Electronics
Assuming the 90 days trading horizon Hana Financial is expected to generate 2.67 times more return on investment than Daeduck Electronics. However, Hana Financial is 2.67 times more volatile than Daeduck Electronics Co. It trades about 0.31 of its potential returns per unit of risk. Daeduck Electronics Co is currently generating about -0.08 per unit of risk. If you would invest 5,780,000 in Hana Financial on November 5, 2024 and sell it today you would earn a total of 270,000 from holding Hana Financial or generate 4.67% 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. Daeduck Electronics Co
Performance |
| Timeline |
| Hana Financial |
| Daeduck Electronics |
Hana Financial and Daeduck Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Daeduck Electronics
The main advantage of trading using opposite Hana Financial and Daeduck Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Daeduck 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 Daeduck Electronics will offset losses from the drop in Daeduck Electronics' 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 |
| Daeduck Electronics vs. Daehan Steel | Daeduck Electronics vs. Industrial Bank | Daeduck Electronics vs. Shinhan Financial Group | Daeduck Electronics vs. KB Financial Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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