Correlation Between Hana Financial and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Duksan Hi 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 Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Duksan Hi Metal, you can compare the effects of market volatilities on Hana Financial and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Duksan Hi.
Diversification Opportunities for Hana Financial and Duksan Hi
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hana and Duksan is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Hana Financial i.e., Hana Financial and Duksan Hi go up and down completely randomly.
Pair Corralation between Hana Financial and Duksan Hi
Assuming the 90 days trading horizon Hana Financial is expected to generate 0.46 times more return on investment than Duksan Hi. However, Hana Financial is 2.18 times less risky than Duksan Hi. It trades about 0.19 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.32 per unit of risk. If you would invest 6,030,000 in Hana Financial on September 4, 2024 and sell it today you would earn a total of 340,000 from holding Hana Financial or generate 5.64% 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. Duksan Hi Metal
Performance |
| Timeline |
| Hana Financial |
| Duksan Hi Metal |
Hana Financial and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Duksan Hi
The main advantage of trading using opposite Hana Financial and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Hana Financial vs. Duksan Hi Metal | Hana Financial vs. InnoTherapy | Hana Financial vs. Mobile Appliance | Hana Financial vs. Automobile Pc |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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