Correlation Between Hana Financial and RFTech
Can any of the company-specific risk be diversified away by investing in both Hana Financial and RFTech 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 RFTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and RFTech Co, you can compare the effects of market volatilities on Hana Financial and RFTech 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 RFTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and RFTech.
Diversification Opportunities for Hana Financial and RFTech
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hana and RFTech is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and RFTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RFTech 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 RFTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RFTech has no effect on the direction of Hana Financial i.e., Hana Financial and RFTech go up and down completely randomly.
Pair Corralation between Hana Financial and RFTech
Assuming the 90 days trading horizon Hana Financial is expected to generate 1.29 times more return on investment than RFTech. However, Hana Financial is 1.29 times more volatile than RFTech Co. It trades about 0.08 of its potential returns per unit of risk. RFTech Co is currently generating about -0.01 per unit of risk. If you would invest 3,872,861 in Hana Financial on October 14, 2024 and sell it today you would earn a total of 1,987,139 from holding Hana Financial or generate 51.31% 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. RFTech Co
Performance |
| Timeline |
| Hana Financial |
| RFTech |
Hana Financial and RFTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and RFTech
The main advantage of trading using opposite Hana Financial and RFTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, RFTech 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 RFTech will offset losses from the drop in RFTech's long position.| Hana Financial vs. Moadata Co | Hana Financial vs. Lotte Data Communication | Hana Financial vs. Automobile Pc | Hana Financial vs. Sangsangin Investment Securities |
| RFTech vs. Daehan Steel | RFTech vs. Hyundai Engineering Construction | RFTech vs. SeAH Besteel Corp | RFTech vs. Seohee Construction Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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