Correlation Between Hana Financial and Koryo Credit
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Koryo Credit 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 Koryo Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Koryo Credit Information, you can compare the effects of market volatilities on Hana Financial and Koryo Credit 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 Koryo Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Koryo Credit.
Diversification Opportunities for Hana Financial and Koryo Credit
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hana and Koryo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Koryo Credit Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koryo Credit Information 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 Koryo Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koryo Credit Information has no effect on the direction of Hana Financial i.e., Hana Financial and Koryo Credit go up and down completely randomly.
Pair Corralation between Hana Financial and Koryo Credit
Assuming the 90 days trading horizon Hana Financial is expected to under-perform the Koryo Credit. In addition to that, Hana Financial is 1.52 times more volatile than Koryo Credit Information. It trades about -0.03 of its total potential returns per unit of risk. Koryo Credit Information is currently generating about 0.17 per unit of volatility. If you would invest 973,000 in Koryo Credit Information on August 30, 2024 and sell it today you would earn a total of 44,000 from holding Koryo Credit Information or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. Koryo Credit Information
Performance |
| Timeline |
| Hana Financial |
| Koryo Credit Information |
Hana Financial and Koryo Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Koryo Credit
The main advantage of trading using opposite Hana Financial and Koryo Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Koryo Credit 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 Koryo Credit will offset losses from the drop in Koryo Credit's long position.| Hana Financial vs. Cube Entertainment | Hana Financial vs. Dreamus Company | Hana Financial vs. LG Energy Solution | Hana Financial vs. Dongwon System |
| Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. Samsung Electronics Co | Koryo Credit vs. KB Financial Group | Koryo Credit vs. Shinhan 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |