Correlation Between MetaLabs and Hanwha Aerospace
Can any of the company-specific risk be diversified away by investing in both MetaLabs and Hanwha Aerospace 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 MetaLabs and Hanwha Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetaLabs Co and Hanwha Aerospace Co, you can compare the effects of market volatilities on MetaLabs and Hanwha Aerospace 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 MetaLabs with a short position of Hanwha Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetaLabs and Hanwha Aerospace.
Diversification Opportunities for MetaLabs and Hanwha Aerospace
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MetaLabs and Hanwha is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MetaLabs Co and Hanwha Aerospace Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Aerospace and MetaLabs 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 MetaLabs Co are associated (or correlated) with Hanwha Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Aerospace has no effect on the direction of MetaLabs i.e., MetaLabs and Hanwha Aerospace go up and down completely randomly.
Pair Corralation between MetaLabs and Hanwha Aerospace
Assuming the 90 days trading horizon MetaLabs Co is expected to under-perform the Hanwha Aerospace. In addition to that, MetaLabs is 1.1 times more volatile than Hanwha Aerospace Co. It trades about -0.02 of its total potential returns per unit of risk. Hanwha Aerospace Co is currently generating about 0.12 per unit of volatility. If you would invest 6,523,333 in Hanwha Aerospace Co on August 28, 2024 and sell it today you would earn a total of 29,376,667 from holding Hanwha Aerospace Co or generate 450.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetaLabs Co vs. Hanwha Aerospace Co
Performance |
| Timeline |
| MetaLabs |
| Hanwha Aerospace |
MetaLabs and Hanwha Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetaLabs and Hanwha Aerospace
The main advantage of trading using opposite MetaLabs and Hanwha Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetaLabs position performs unexpectedly, Hanwha Aerospace 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 Hanwha Aerospace will offset losses from the drop in Hanwha Aerospace's long position.| MetaLabs vs. Busan Industrial Co | MetaLabs vs. Busan Ind | MetaLabs vs. Mirae Asset Daewoo | MetaLabs vs. UNISEM Co |
| Hanwha Aerospace vs. Samsung Electronics Co | Hanwha Aerospace vs. Samsung Electronics Co | Hanwha Aerospace vs. Hyundai Motor Co | Hanwha Aerospace vs. Hyundai Motor |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |