Correlation Between Hana Financial and Sam A
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Sam A 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 Financial and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Financial 7 and Sam A Pharm Co, you can compare the effects of market volatilities on Hana Financial and Sam A 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 Financial with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Sam A.
Diversification Opportunities for Hana Financial and Sam A
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and Sam is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm and Hana 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 Hana Financial 7 are associated (or correlated) with Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Hana Financial i.e., Hana Financial and Sam A go up and down completely randomly.
Pair Corralation between Hana Financial and Sam A
Assuming the 90 days trading horizon Hana Financial 7 is expected to generate 2.18 times more return on investment than Sam A. However, Hana Financial is 2.18 times more volatile than Sam A Pharm Co. It trades about 0.19 of its potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.26 per unit of risk. If you would invest 814,000 in Hana Financial 7 on September 3, 2024 and sell it today you would earn a total of 418,000 from holding Hana Financial 7 or generate 51.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial 7 vs. Sam A Pharm Co
Performance |
| Timeline |
| Hana Financial 7 |
| Sam A Pharm |
Hana Financial and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Sam A
The main advantage of trading using opposite Hana Financial and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
| Sam A vs. NewFlex Technology Co | Sam A vs. Woori Technology | Sam A vs. AeroSpace Technology of | Sam A vs. Digital Power Communications |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |