Correlation Between Hana Financial and Camus Engineering
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Camus Engineering 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 Camus Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Camus Engineering Construction, you can compare the effects of market volatilities on Hana Financial and Camus Engineering 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 Camus Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Camus Engineering.
Diversification Opportunities for Hana Financial and Camus Engineering
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and Camus is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Camus Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camus Engineering 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 Camus Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camus Engineering has no effect on the direction of Hana Financial i.e., Hana Financial and Camus Engineering go up and down completely randomly.
Pair Corralation between Hana Financial and Camus Engineering
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.05 times less return on investment than Camus Engineering. But when comparing it to its historical volatility, Hana Financial is 8.93 times less risky than Camus Engineering. It trades about 0.38 of its potential returns per unit of risk. Camus Engineering Construction is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 130,900 in Camus Engineering Construction on November 4, 2024 and sell it today you would earn a total of 2,100 from holding Camus Engineering Construction or generate 1.6% 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. Camus Engineering Construction
Performance |
| Timeline |
| Hana Financial |
| Camus Engineering |
Hana Financial and Camus Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Camus Engineering
The main advantage of trading using opposite Hana Financial and Camus Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Camus Engineering 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 Camus Engineering will offset losses from the drop in Camus Engineering's 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 |
| Camus Engineering vs. Tway Air Co | Camus Engineering vs. Puloon Technology | Camus Engineering vs. Digital Imaging Technology | Camus Engineering vs. InnoTherapy |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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