Correlation Between Hana Financial and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Hana Financial and MEDIPOST 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 MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and MEDIPOST Co, you can compare the effects of market volatilities on Hana Financial and MEDIPOST 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 MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and MEDIPOST.
Diversification Opportunities for Hana Financial and MEDIPOST
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hana and MEDIPOST is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST 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 MEDIPOST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPOST has no effect on the direction of Hana Financial i.e., Hana Financial and MEDIPOST go up and down completely randomly.
Pair Corralation between Hana Financial and MEDIPOST
Assuming the 90 days trading horizon Hana Financial is expected to generate 0.61 times more return on investment than MEDIPOST. However, Hana Financial is 1.64 times less risky than MEDIPOST. It trades about 0.03 of its potential returns per unit of risk. MEDIPOST Co is currently generating about 0.01 per unit of risk. If you would invest 4,726,489 in Hana Financial on October 15, 2024 and sell it today you would earn a total of 1,133,511 from holding Hana Financial or generate 23.98% 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. MEDIPOST Co
Performance |
| Timeline |
| Hana Financial |
| MEDIPOST |
Hana Financial and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and MEDIPOST
The main advantage of trading using opposite Hana Financial and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, MEDIPOST 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 MEDIPOST will offset losses from the drop in MEDIPOST's long position.| Hana Financial vs. Korea Air Svc | Hana Financial vs. Lotte Chilsung Beverage | Hana Financial vs. GS Retail Co | Hana Financial vs. Kisan Telecom Co |
| MEDIPOST vs. Heungkuk Metaltech CoLtd | MEDIPOST vs. Korea Computer | MEDIPOST vs. Nable Communications | MEDIPOST vs. Display Tech 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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