Correlation Between Hana Financial and Itcen
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Itcen 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 Itcen 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 Itcen Co, you can compare the effects of market volatilities on Hana Financial and Itcen 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 Itcen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Itcen.
Diversification Opportunities for Hana Financial and Itcen
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hana and Itcen is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and Itcen Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itcen 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 Itcen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itcen has no effect on the direction of Hana Financial i.e., Hana Financial and Itcen go up and down completely randomly.
Pair Corralation between Hana Financial and Itcen
Assuming the 90 days trading horizon Hana Financial 7 is expected to generate 1.06 times more return on investment than Itcen. However, Hana Financial is 1.06 times more volatile than Itcen Co. It trades about 0.06 of its potential returns per unit of risk. Itcen Co is currently generating about 0.02 per unit of risk. If you would invest 1,322,546 in Hana Financial 7 on October 14, 2024 and sell it today you would earn a total of 375,454 from holding Hana Financial 7 or generate 28.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial 7 vs. Itcen Co
Performance |
| Timeline |
| Hana Financial 7 |
| Itcen |
Hana Financial and Itcen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Itcen
The main advantage of trading using opposite Hana Financial and Itcen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Itcen 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 Itcen will offset losses from the drop in Itcen's long position.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
| Itcen vs. Pan Entertainment Co | Itcen vs. SAMG Entertainment Co | Itcen vs. Alton Sports CoLtd | Itcen vs. Daou Data Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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