Correlation Between Hana Materials and Ezwelfare
Can any of the company-specific risk be diversified away by investing in both Hana Materials and Ezwelfare 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 Ezwelfare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Materials and Ezwelfare Co, you can compare the effects of market volatilities on Hana Materials and Ezwelfare 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 Ezwelfare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Materials and Ezwelfare.
Diversification Opportunities for Hana Materials and Ezwelfare
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hana and Ezwelfare is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hana Materials and Ezwelfare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ezwelfare 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 Ezwelfare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ezwelfare has no effect on the direction of Hana Materials i.e., Hana Materials and Ezwelfare go up and down completely randomly.
Pair Corralation between Hana Materials and Ezwelfare
Assuming the 90 days trading horizon Hana Materials is expected to under-perform the Ezwelfare. In addition to that, Hana Materials is 1.51 times more volatile than Ezwelfare Co. It trades about -0.05 of its total potential returns per unit of risk. Ezwelfare Co is currently generating about -0.02 per unit of volatility. If you would invest 657,000 in Ezwelfare Co on September 12, 2024 and sell it today you would lose (122,000) from holding Ezwelfare Co or give up 18.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Materials vs. Ezwelfare Co
Performance |
| Timeline |
| Hana Materials |
| Ezwelfare |
Hana Materials and Ezwelfare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Materials and Ezwelfare
The main advantage of trading using opposite Hana Materials and Ezwelfare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Materials position performs unexpectedly, Ezwelfare 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 Ezwelfare will offset losses from the drop in Ezwelfare's long position.| Hana Materials vs. SK Hynix | Hana Materials vs. People Technology | Hana Materials vs. SIMMTECH Co | Hana Materials vs. GemVaxKAEL CoLtd |
| Ezwelfare vs. Hana Materials | Ezwelfare vs. NewFlex Technology Co | Ezwelfare vs. INNOX Advanced Materials | Ezwelfare vs. Puloon Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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