Correlation Between Incar Financial and Hanjinkal
Can any of the company-specific risk be diversified away by investing in both Incar Financial and Hanjinkal 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 Incar Financial and Hanjinkal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and Hanjinkal, you can compare the effects of market volatilities on Incar Financial and Hanjinkal 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 Incar Financial with a short position of Hanjinkal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and Hanjinkal.
Diversification Opportunities for Incar Financial and Hanjinkal
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Incar and Hanjinkal is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and Hanjinkal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjinkal and Incar Financial 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 Incar Financial Service are associated (or correlated) with Hanjinkal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjinkal has no effect on the direction of Incar Financial i.e., Incar Financial and Hanjinkal go up and down completely randomly.
Pair Corralation between Incar Financial and Hanjinkal
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 1.79 times more return on investment than Hanjinkal. However, Incar Financial is 1.79 times more volatile than Hanjinkal. It trades about 0.21 of its potential returns per unit of risk. Hanjinkal is currently generating about -0.19 per unit of risk. If you would invest 513,000 in Incar Financial Service on August 29, 2024 and sell it today you would earn a total of 103,000 from holding Incar Financial Service or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Incar Financial Service vs. Hanjinkal
Performance |
| Timeline |
| Incar Financial Service |
| Hanjinkal |
Incar Financial and Hanjinkal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and Hanjinkal
The main advantage of trading using opposite Incar Financial and Hanjinkal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial position performs unexpectedly, Hanjinkal 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 Hanjinkal will offset losses from the drop in Hanjinkal's long position.| Incar Financial vs. Hanjinkal | Incar Financial vs. Busan Industrial Co | Incar Financial vs. Busan Ind | Incar Financial vs. Mirae Asset Daewoo |
| Hanjinkal vs. Samsung Electronics Co | Hanjinkal vs. Samsung Electronics Co | Hanjinkal vs. LG Energy Solution | Hanjinkal 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |