Correlation Between Alton Sports and Hanwha Life
Can any of the company-specific risk be diversified away by investing in both Alton Sports and Hanwha Life 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 Alton Sports and Hanwha Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and Hanwha Life Insurance, you can compare the effects of market volatilities on Alton Sports and Hanwha Life 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 Alton Sports with a short position of Hanwha Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and Hanwha Life.
Diversification Opportunities for Alton Sports and Hanwha Life
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alton and Hanwha is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and Hanwha Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Life Insurance and Alton Sports 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 Alton Sports CoLtd are associated (or correlated) with Hanwha Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Life Insurance has no effect on the direction of Alton Sports i.e., Alton Sports and Hanwha Life go up and down completely randomly.
Pair Corralation between Alton Sports and Hanwha Life
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to generate 1.41 times more return on investment than Hanwha Life. However, Alton Sports is 1.41 times more volatile than Hanwha Life Insurance. It trades about 0.35 of its potential returns per unit of risk. Hanwha Life Insurance is currently generating about 0.15 per unit of risk. If you would invest 144,000 in Alton Sports CoLtd on November 3, 2024 and sell it today you would earn a total of 10,000 from holding Alton Sports CoLtd or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. Hanwha Life Insurance
Performance |
| Timeline |
| Alton Sports CoLtd |
| Hanwha Life Insurance |
Alton Sports and Hanwha Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and Hanwha Life
The main advantage of trading using opposite Alton Sports and Hanwha Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports position performs unexpectedly, Hanwha Life 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 Life will offset losses from the drop in Hanwha Life's long position.| Alton Sports vs. Samyung Trading Co | Alton Sports vs. Coloray International Investment | Alton Sports vs. Sangsangin Investment Securities | Alton Sports vs. TS Investment Corp |
| Hanwha Life vs. AptaBio Therapeutics | Hanwha Life vs. Daewoo SBI SPAC | Hanwha Life vs. Dream Security co | Hanwha Life vs. Microfriend |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| 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 |