Correlation Between Hana Financial and AeroSpace Technology
Can any of the company-specific risk be diversified away by investing in both Hana Financial and AeroSpace Technology 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 AeroSpace Technology 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 AeroSpace Technology of, you can compare the effects of market volatilities on Hana Financial and AeroSpace Technology 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 AeroSpace Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and AeroSpace Technology.
Diversification Opportunities for Hana Financial and AeroSpace Technology
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and AeroSpace is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and AeroSpace Technology of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AeroSpace Technology 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 AeroSpace Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AeroSpace Technology has no effect on the direction of Hana Financial i.e., Hana Financial and AeroSpace Technology go up and down completely randomly.
Pair Corralation between Hana Financial and AeroSpace Technology
Assuming the 90 days trading horizon Hana Financial 7 is expected to generate 2.0 times more return on investment than AeroSpace Technology. However, Hana Financial is 2.0 times more volatile than AeroSpace Technology of. It trades about 0.2 of its potential returns per unit of risk. AeroSpace Technology of is currently generating about 0.11 per unit of risk. If you would invest 879,394 in Hana Financial 7 on November 3, 2024 and sell it today you would earn a total of 1,300,606 from holding Hana Financial 7 or generate 147.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial 7 vs. AeroSpace Technology of
Performance |
| Timeline |
| Hana Financial 7 |
| AeroSpace Technology |
Hana Financial and AeroSpace Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and AeroSpace Technology
The main advantage of trading using opposite Hana Financial and AeroSpace Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, AeroSpace Technology 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 AeroSpace Technology will offset losses from the drop in AeroSpace Technology's long position.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
| AeroSpace Technology vs. Samlip General Foods | AeroSpace Technology vs. Daejung Chemicals Metals | AeroSpace Technology vs. Sempio Foods Co | AeroSpace Technology vs. Lotte Rental Co |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |