Correlation Between Hana Financial and Sebo Manufacturing
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Sebo Manufacturing 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 Sebo Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Sebo Manufacturing Engineering, you can compare the effects of market volatilities on Hana Financial and Sebo Manufacturing 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 Sebo Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Sebo Manufacturing.
Diversification Opportunities for Hana Financial and Sebo Manufacturing
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hana and Sebo is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Sebo Manufacturing Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sebo Manufacturing 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 Sebo Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sebo Manufacturing has no effect on the direction of Hana Financial i.e., Hana Financial and Sebo Manufacturing go up and down completely randomly.
Pair Corralation between Hana Financial and Sebo Manufacturing
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.02 times more return on investment than Sebo Manufacturing. However, Hana Financial is 1.02 times more volatile than Sebo Manufacturing Engineering. It trades about 0.08 of its potential returns per unit of risk. Sebo Manufacturing Engineering is currently generating about 0.05 per unit of risk. If you would invest 4,004,783 in Hana Financial on November 9, 2024 and sell it today you would earn a total of 2,135,217 from holding Hana Financial or generate 53.32% 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. Sebo Manufacturing Engineering
Performance |
| Timeline |
| Hana Financial |
| Sebo Manufacturing |
Hana Financial and Sebo Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Sebo Manufacturing
The main advantage of trading using opposite Hana Financial and Sebo Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Sebo Manufacturing 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 Sebo Manufacturing will offset losses from the drop in Sebo Manufacturing's long position.| Hana Financial vs. Solus Advanced Materials | Hana Financial vs. TOPMATERIAL LTD | Hana Financial vs. Daejoo Electronic Materials | Hana Financial vs. Union Materials Corp |
| Sebo Manufacturing vs. Jeong Moon Information | Sebo Manufacturing vs. Histeel | Sebo Manufacturing vs. Lotte Chilsung Beverage | Sebo Manufacturing vs. SCI Information Service |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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