Correlation Between Hana Materials and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Hana Materials and DONGKUK TED 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 DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Materials and DONGKUK TED METAL, you can compare the effects of market volatilities on Hana Materials and DONGKUK TED 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 DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Materials and DONGKUK TED.
Diversification Opportunities for Hana Materials and DONGKUK TED
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hana and DONGKUK is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hana Materials and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL 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 DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of Hana Materials i.e., Hana Materials and DONGKUK TED go up and down completely randomly.
Pair Corralation between Hana Materials and DONGKUK TED
Assuming the 90 days trading horizon Hana Materials is expected to generate 3.13 times more return on investment than DONGKUK TED. However, Hana Materials is 3.13 times more volatile than DONGKUK TED METAL. It trades about 0.25 of its potential returns per unit of risk. DONGKUK TED METAL is currently generating about 0.3 per unit of risk. If you would invest 2,280,000 in Hana Materials on November 1, 2024 and sell it today you would earn a total of 375,000 from holding Hana Materials or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Materials vs. DONGKUK TED METAL
Performance |
| Timeline |
| Hana Materials |
| DONGKUK TED METAL |
Hana Materials and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Materials and DONGKUK TED
The main advantage of trading using opposite Hana Materials and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Materials position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| Hana Materials vs. Union Materials Corp | Hana Materials vs. Infinitt Healthcare Co | Hana Materials vs. CKH Food Health | Hana Materials vs. Ssangyong Materials Corp |
| DONGKUK TED vs. Sempio Foods Co | DONGKUK TED vs. EV Advanced Material | DONGKUK TED vs. Hana Materials | DONGKUK TED vs. LAKE MATERIALS LTD |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |