Correlation Between Hanjoo Light and MediaZen
Can any of the company-specific risk be diversified away by investing in both Hanjoo Light and MediaZen 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 Hanjoo Light and MediaZen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjoo Light Metal and MediaZen, you can compare the effects of market volatilities on Hanjoo Light and MediaZen 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 Hanjoo Light with a short position of MediaZen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjoo Light and MediaZen.
Diversification Opportunities for Hanjoo Light and MediaZen
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanjoo and MediaZen is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hanjoo Light Metal and MediaZen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZen and Hanjoo Light 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 Hanjoo Light Metal are associated (or correlated) with MediaZen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZen has no effect on the direction of Hanjoo Light i.e., Hanjoo Light and MediaZen go up and down completely randomly.
Pair Corralation between Hanjoo Light and MediaZen
If you would invest 1,130,000 in MediaZen on August 31, 2024 and sell it today you would earn a total of 0.00 from holding MediaZen or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanjoo Light Metal vs. MediaZen
Performance |
| Timeline |
| Hanjoo Light Metal |
| MediaZen |
Hanjoo Light and MediaZen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanjoo Light and MediaZen
The main advantage of trading using opposite Hanjoo Light and MediaZen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjoo Light position performs unexpectedly, MediaZen 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 MediaZen will offset losses from the drop in MediaZen's long position.| Hanjoo Light vs. Value Added Technology | Hanjoo Light vs. Ilji Technology Co | Hanjoo Light vs. NewFlex Technology Co | Hanjoo Light vs. Eugene Technology CoLtd |
| MediaZen vs. Samsung Electronics Co | MediaZen vs. Samsung Electronics Co | MediaZen vs. LG Energy Solution | MediaZen vs. SK Hynix |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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