Correlation Between Hana Financial and Withuspharmaceutical
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Withuspharmaceutical 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 Withuspharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial and Withuspharmaceutical CoLtd, you can compare the effects of market volatilities on Hana Financial and Withuspharmaceutical 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 Withuspharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Withuspharmaceutical.
Diversification Opportunities for Hana Financial and Withuspharmaceutical
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hana and Withuspharmaceutical is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial and Withuspharmaceutical CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Withuspharmaceutical 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 Withuspharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Withuspharmaceutical has no effect on the direction of Hana Financial i.e., Hana Financial and Withuspharmaceutical go up and down completely randomly.
Pair Corralation between Hana Financial and Withuspharmaceutical
Assuming the 90 days trading horizon Hana Financial is expected to generate 0.61 times more return on investment than Withuspharmaceutical. However, Hana Financial is 1.65 times less risky than Withuspharmaceutical. It trades about 0.07 of its potential returns per unit of risk. Withuspharmaceutical CoLtd is currently generating about 0.01 per unit of risk. If you would invest 3,808,824 in Hana Financial on August 26, 2024 and sell it today you would earn a total of 2,441,176 from holding Hana Financial or generate 64.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial vs. Withuspharmaceutical CoLtd
Performance |
| Timeline |
| Hana Financial |
| Withuspharmaceutical |
Hana Financial and Withuspharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Withuspharmaceutical
The main advantage of trading using opposite Hana Financial and Withuspharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Withuspharmaceutical 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 Withuspharmaceutical will offset losses from the drop in Withuspharmaceutical's long position.| Hana Financial vs. Korea New Network | Hana Financial vs. Dong A Eltek | Hana Financial vs. Dreamus Company | Hana Financial vs. SK Bioscience Co |
| Withuspharmaceutical vs. Sewoon Medical Co | Withuspharmaceutical vs. Hana Financial | Withuspharmaceutical vs. Pureun Mutual Savings | Withuspharmaceutical 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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