Correlation Between Hana Financial and Mobase Electronics
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Mobase 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 Mobase 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 Mobase Electronics CoLtd, you can compare the effects of market volatilities on Hana Financial and Mobase 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 Mobase Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Mobase Electronics.
Diversification Opportunities for Hana Financial and Mobase Electronics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hana and Mobase is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Mobase Electronics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobase Electronics CoLtd 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 Mobase Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobase Electronics CoLtd has no effect on the direction of Hana Financial i.e., Hana Financial and Mobase Electronics go up and down completely randomly.
Pair Corralation between Hana Financial and Mobase Electronics
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.17 times more return on investment than Mobase Electronics. However, Hana Financial is 1.17 times more volatile than Mobase Electronics CoLtd. It trades about 0.04 of its potential returns per unit of risk. Mobase Electronics CoLtd is currently generating about -0.07 per unit of risk. If you would invest 5,239,198 in Hana Financial on November 3, 2024 and sell it today you would earn a total of 810,802 from holding Hana Financial or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Hana Financial vs. Mobase Electronics CoLtd
Performance |
| Timeline |
| Hana Financial |
| Mobase Electronics CoLtd |
Hana Financial and Mobase Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Mobase Electronics
The main advantage of trading using opposite Hana Financial and Mobase Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Mobase 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 Mobase Electronics will offset losses from the drop in Mobase Electronics' long position.| Hana Financial vs. Hanjin Transportation Co | Hana Financial vs. Seoul Food Industrial | Hana Financial vs. Daiyang Metal Co | Hana Financial vs. Industrial Bank |
| Mobase Electronics vs. Duksan Hi Metal | Mobase Electronics vs. Formetal Co | Mobase Electronics vs. Leaders Technology Investment | Mobase Electronics vs. Atinum Investment Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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