Correlation Between Hana Financial and People Technology
Can any of the company-specific risk be diversified away by investing in both Hana Financial and People Technology 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 People Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and People Technology, you can compare the effects of market volatilities on Hana Financial and People Technology 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 People Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and People Technology.
Diversification Opportunities for Hana Financial and People Technology
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hana and People is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and People Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on People Technology 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 People Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of People Technology has no effect on the direction of Hana Financial i.e., Hana Financial and People Technology go up and down completely randomly.
Pair Corralation between Hana Financial and People Technology
Assuming the 90 days trading horizon Hana Financial is expected to generate 0.29 times more return on investment than People Technology. However, Hana Financial is 3.45 times less risky than People Technology. It trades about 0.38 of its potential returns per unit of risk. People Technology is currently generating about 0.06 per unit of risk. If you would invest 5,700,000 in Hana Financial on November 4, 2024 and sell it today you would earn a total of 350,000 from holding Hana Financial or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. People Technology
Performance |
| Timeline |
| Hana Financial |
| People Technology |
Hana Financial and People Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and People Technology
The main advantage of trading using opposite Hana Financial and People Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, People Technology 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 People Technology will offset losses from the drop in People Technology's long position.| Hana Financial vs. Barunson Entertainment Arts | Hana Financial vs. Polaris Office Corp | Hana Financial vs. Golden Bridge Investment | Hana Financial vs. Hyundai Home Shopping |
| People Technology vs. MetaLabs Co | People Technology vs. Duksan Hi Metal | People Technology vs. Miwon Chemical | People Technology vs. Formetal 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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