Correlation Between Hana Financial and Youngbo Chemical
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Youngbo Chemical 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 Youngbo Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Youngbo Chemical Co, you can compare the effects of market volatilities on Hana Financial and Youngbo Chemical 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 Youngbo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Youngbo Chemical.
Diversification Opportunities for Hana Financial and Youngbo Chemical
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hana and Youngbo is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Youngbo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngbo Chemical 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 Youngbo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngbo Chemical has no effect on the direction of Hana Financial i.e., Hana Financial and Youngbo Chemical go up and down completely randomly.
Pair Corralation between Hana Financial and Youngbo Chemical
Assuming the 90 days trading horizon Hana Financial is expected to generate 2.41 times less return on investment than Youngbo Chemical. But when comparing it to its historical volatility, Hana Financial is 1.96 times less risky than Youngbo Chemical. It trades about 0.3 of its potential returns per unit of risk. Youngbo Chemical Co is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 356,000 in Youngbo Chemical Co on October 29, 2024 and sell it today you would earn a total of 37,000 from holding Youngbo Chemical Co or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. Youngbo Chemical Co
Performance |
| Timeline |
| Hana Financial |
| Youngbo Chemical |
Hana Financial and Youngbo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Youngbo Chemical
The main advantage of trading using opposite Hana Financial and Youngbo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Youngbo Chemical 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 Youngbo Chemical will offset losses from the drop in Youngbo Chemical's long position.| Hana Financial vs. Dongbang Transport Logistics | Hana Financial vs. Seoyon Topmetal Co | Hana Financial vs. Inzi Display CoLtd | Hana Financial vs. Asiana Airlines |
| Youngbo Chemical vs. Hankukpackage Co | Youngbo Chemical vs. Woori Financial Group | Youngbo Chemical vs. Settlebank | Youngbo Chemical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |