Correlation Between Hana Financial and Taewoong Logistics
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Taewoong Logistics 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 Taewoong Logistics 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 Taewoong Logistics CoLtd, you can compare the effects of market volatilities on Hana Financial and Taewoong Logistics 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 Taewoong Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Taewoong Logistics.
Diversification Opportunities for Hana Financial and Taewoong Logistics
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hana and Taewoong is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and Taewoong Logistics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taewoong Logistics CoLtd 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 Taewoong Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taewoong Logistics CoLtd has no effect on the direction of Hana Financial i.e., Hana Financial and Taewoong Logistics go up and down completely randomly.
Pair Corralation between Hana Financial and Taewoong Logistics
Assuming the 90 days trading horizon Hana Financial 7 is expected to generate 1.36 times more return on investment than Taewoong Logistics. However, Hana Financial is 1.36 times more volatile than Taewoong Logistics CoLtd. It trades about 0.05 of its potential returns per unit of risk. Taewoong Logistics CoLtd is currently generating about -0.02 per unit of risk. If you would invest 1,688,713 in Hana Financial 7 on November 3, 2024 and sell it today you would earn a total of 491,287 from holding Hana Financial 7 or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial 7 vs. Taewoong Logistics CoLtd
Performance |
| Timeline |
| Hana Financial 7 |
| Taewoong Logistics CoLtd |
Hana Financial and Taewoong Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Taewoong Logistics
The main advantage of trading using opposite Hana Financial and Taewoong Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Taewoong Logistics 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 Taewoong Logistics will offset losses from the drop in Taewoong Logistics' long position.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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