Correlation Between Hana Financial and KTB Investment
Can any of the company-specific risk be diversified away by investing in both Hana Financial and KTB Investment 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 KTB Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and KTB Investment Securities, you can compare the effects of market volatilities on Hana Financial and KTB Investment 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 KTB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and KTB Investment.
Diversification Opportunities for Hana Financial and KTB Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and KTB is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and KTB Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTB Investment Securities 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 KTB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTB Investment Securities has no effect on the direction of Hana Financial i.e., Hana Financial and KTB Investment go up and down completely randomly.
Pair Corralation between Hana Financial and KTB Investment
Assuming the 90 days trading horizon Hana Financial is expected to generate 0.72 times more return on investment than KTB Investment. However, Hana Financial is 1.39 times less risky than KTB Investment. It trades about 0.04 of its potential returns per unit of risk. KTB Investment Securities is currently generating about 0.0 per unit of risk. If you would invest 4,406,278 in Hana Financial on November 1, 2024 and sell it today you would earn a total of 1,513,722 from holding Hana Financial or generate 34.35% 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. KTB Investment Securities
Performance |
| Timeline |
| Hana Financial |
| KTB Investment Securities |
Hana Financial and KTB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and KTB Investment
The main advantage of trading using opposite Hana Financial and KTB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, KTB Investment 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 KTB Investment will offset losses from the drop in KTB Investment's long position.| Hana Financial vs. INSUN Environmental New | Hana Financial vs. Korea Steel Co | Hana Financial vs. Grand Korea Leisure | Hana Financial vs. Husteel |
| KTB Investment vs. KB Financial Group | KTB Investment vs. Shinhan Financial Group | KTB Investment vs. Hana Financial | KTB Investment 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |