Correlation Between Hanwha Life and Naver
Can any of the company-specific risk be diversified away by investing in both Hanwha Life and Naver 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 Hanwha Life and Naver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanwha Life Insurance and Naver, you can compare the effects of market volatilities on Hanwha Life and Naver 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 Hanwha Life with a short position of Naver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanwha Life and Naver.
Diversification Opportunities for Hanwha Life and Naver
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hanwha and Naver is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hanwha Life Insurance and Naver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naver and Hanwha Life 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 Hanwha Life Insurance are associated (or correlated) with Naver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naver has no effect on the direction of Hanwha Life i.e., Hanwha Life and Naver go up and down completely randomly.
Pair Corralation between Hanwha Life and Naver
Assuming the 90 days trading horizon Hanwha Life is expected to generate 2.54 times less return on investment than Naver. In addition to that, Hanwha Life is 1.14 times more volatile than Naver. It trades about 0.0 of its total potential returns per unit of risk. Naver is currently generating about 0.01 per unit of volatility. If you would invest 20,200,000 in Naver on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Naver or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanwha Life Insurance vs. Naver
Performance |
| Timeline |
| Hanwha Life Insurance |
| Naver |
Hanwha Life and Naver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanwha Life and Naver
The main advantage of trading using opposite Hanwha Life and Naver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanwha Life position performs unexpectedly, Naver 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 Naver will offset losses from the drop in Naver's long position.| Hanwha Life vs. AptaBio Therapeutics | Hanwha Life vs. Daewoo SBI SPAC | Hanwha Life vs. Dream Security co | Hanwha Life vs. Microfriend |
| Naver vs. iNtRON Biotechnology | Naver vs. Keyang Electric Machinery | Naver vs. Lotte Non Life Insurance | Naver vs. Hanwha Life Insurance |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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