Correlation Between Hana Financial and WOOJUNG BIO
Can any of the company-specific risk be diversified away by investing in both Hana Financial and WOOJUNG BIO 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 WOOJUNG BIO 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 WOOJUNG BIO, you can compare the effects of market volatilities on Hana Financial and WOOJUNG BIO 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 WOOJUNG BIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and WOOJUNG BIO.
Diversification Opportunities for Hana Financial and WOOJUNG BIO
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hana and WOOJUNG is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and WOOJUNG BIO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOOJUNG BIO 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 WOOJUNG BIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOOJUNG BIO has no effect on the direction of Hana Financial i.e., Hana Financial and WOOJUNG BIO go up and down completely randomly.
Pair Corralation between Hana Financial and WOOJUNG BIO
Assuming the 90 days trading horizon Hana Financial 7 is expected to generate 1.32 times more return on investment than WOOJUNG BIO. However, Hana Financial is 1.32 times more volatile than WOOJUNG BIO. It trades about 0.28 of its potential returns per unit of risk. WOOJUNG BIO is currently generating about -0.21 per unit of risk. If you would invest 924,000 in Hana Financial 7 on September 3, 2024 and sell it today you would earn a total of 308,000 from holding Hana Financial 7 or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Financial 7 vs. WOOJUNG BIO
Performance |
| Timeline |
| Hana Financial 7 |
| WOOJUNG BIO |
Hana Financial and WOOJUNG BIO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and WOOJUNG BIO
The main advantage of trading using opposite Hana Financial and WOOJUNG BIO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, WOOJUNG BIO 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 WOOJUNG BIO will offset losses from the drop in WOOJUNG BIO's long position.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
| WOOJUNG BIO vs. EV Advanced Material | WOOJUNG BIO vs. PI Advanced Materials | WOOJUNG BIO vs. Hana Materials | WOOJUNG BIO vs. INNOX Advanced Materials |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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