Correlation Between Hana Materials and Sk Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both Hana Materials and Sk Biopharmaceutica 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 Sk Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Materials and Sk Biopharmaceuticals Co, you can compare the effects of market volatilities on Hana Materials and Sk Biopharmaceutica 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 Sk Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Materials and Sk Biopharmaceutica.
Diversification Opportunities for Hana Materials and Sk Biopharmaceutica
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hana and 326030 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hana Materials and Sk Biopharmaceuticals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sk Biopharmaceuticals 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 Sk Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sk Biopharmaceuticals has no effect on the direction of Hana Materials i.e., Hana Materials and Sk Biopharmaceutica go up and down completely randomly.
Pair Corralation between Hana Materials and Sk Biopharmaceutica
Assuming the 90 days trading horizon Hana Materials is expected to generate 2.06 times more return on investment than Sk Biopharmaceutica. However, Hana Materials is 2.06 times more volatile than Sk Biopharmaceuticals Co. It trades about 0.04 of its potential returns per unit of risk. Sk Biopharmaceuticals Co is currently generating about 0.01 per unit of risk. If you would invest 2,420,000 in Hana Materials on November 4, 2024 and sell it today you would earn a total of 40,000 from holding Hana Materials or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Materials vs. Sk Biopharmaceuticals Co
Performance |
| Timeline |
| Hana Materials |
| Sk Biopharmaceuticals |
Hana Materials and Sk Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Materials and Sk Biopharmaceutica
The main advantage of trading using opposite Hana Materials and Sk Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Materials position performs unexpectedly, Sk Biopharmaceutica 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 Sk Biopharmaceutica will offset losses from the drop in Sk Biopharmaceutica's long position.| Hana Materials vs. Sungmoon Electronics Co | Hana Materials vs. Samsung Electronics Co | Hana Materials vs. ABCO Electronics Co | Hana Materials vs. Homecast CoLtd |
| Sk Biopharmaceutica vs. Ssangyong Materials Corp | Sk Biopharmaceutica vs. Puloon Technology | Sk Biopharmaceutica vs. Hyosung Advanced Materials | Sk Biopharmaceutica vs. Daejoo Electronic Materials |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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