Correlation Between Hana Financial and Daesung Private
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Daesung Private 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 Daesung Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Daesung Private Equity, you can compare the effects of market volatilities on Hana Financial and Daesung Private 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 Daesung Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Daesung Private.
Diversification Opportunities for Hana Financial and Daesung Private
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hana and Daesung is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Daesung Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Private Equity 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 Daesung Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Private Equity has no effect on the direction of Hana Financial i.e., Hana Financial and Daesung Private go up and down completely randomly.
Pair Corralation between Hana Financial and Daesung Private
Assuming the 90 days trading horizon Hana Financial is expected to generate 0.56 times more return on investment than Daesung Private. However, Hana Financial is 1.79 times less risky than Daesung Private. It trades about 0.05 of its potential returns per unit of risk. Daesung Private Equity is currently generating about 0.0 per unit of risk. If you would invest 3,796,471 in Hana Financial on September 14, 2024 and sell it today you would earn a total of 2,203,529 from holding Hana Financial or generate 58.04% 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. Daesung Private Equity
Performance |
| Timeline |
| Hana Financial |
| Daesung Private Equity |
Hana Financial and Daesung Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Daesung Private
The main advantage of trading using opposite Hana Financial and Daesung Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Daesung Private 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 Daesung Private will offset losses from the drop in Daesung Private's long position.| Hana Financial vs. KB Financial Group | Hana Financial vs. Shinhan Financial Group | Hana Financial vs. Woori Financial Group | Hana Financial vs. Samsung Electronics Co |
| Daesung Private vs. KB Financial Group | Daesung Private vs. Shinhan Financial Group | Daesung Private vs. Hana Financial | Daesung Private vs. Woori 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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