Correlation Between Hana Materials and Seung Il
Can any of the company-specific risk be diversified away by investing in both Hana Materials and Seung Il 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 Materials and Seung Il into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Materials and Seung Il, you can compare the effects of market volatilities on Hana Materials and Seung Il 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 Materials with a short position of Seung Il. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Materials and Seung Il.
Diversification Opportunities for Hana Materials and Seung Il
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and Seung is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hana Materials and Seung Il in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seung Il and Hana Materials 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 Materials are associated (or correlated) with Seung Il. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seung Il has no effect on the direction of Hana Materials i.e., Hana Materials and Seung Il go up and down completely randomly.
Pair Corralation between Hana Materials and Seung Il
Assuming the 90 days trading horizon Hana Materials is expected to generate 2.01 times more return on investment than Seung Il. However, Hana Materials is 2.01 times more volatile than Seung Il. It trades about 0.14 of its potential returns per unit of risk. Seung Il is currently generating about -0.04 per unit of risk. If you would invest 2,385,000 in Hana Materials on October 17, 2024 and sell it today you would earn a total of 220,000 from holding Hana Materials or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Materials vs. Seung Il
Performance |
| Timeline |
| Hana Materials |
| Seung Il |
Hana Materials and Seung Il Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Materials and Seung Il
The main advantage of trading using opposite Hana Materials and Seung Il positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Materials position performs unexpectedly, Seung Il 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 Seung Il will offset losses from the drop in Seung Il's long position.| Hana Materials vs. ABOV Semiconductor Co | Hana Materials vs. Hannong Chemicals | Hana Materials vs. Daejung Chemicals Metals | Hana Materials vs. Sam Yang Foods |
| Seung Il vs. Hana Materials | Seung Il vs. Seers Technology | Seung Il vs. LS Materials | Seung Il vs. Hyundai Engineering Plastics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |