Correlation Between Hana Financial and Settlebank
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Settlebank 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 Settlebank 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 Settlebank, you can compare the effects of market volatilities on Hana Financial and Settlebank 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 Settlebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Settlebank.
Diversification Opportunities for Hana Financial and Settlebank
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hana and Settlebank is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and Settlebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Settlebank 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 Settlebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Settlebank has no effect on the direction of Hana Financial i.e., Hana Financial and Settlebank go up and down completely randomly.
Pair Corralation between Hana Financial and Settlebank
Assuming the 90 days trading horizon Hana Financial 7 is expected to under-perform the Settlebank. In addition to that, Hana Financial is 1.32 times more volatile than Settlebank. It trades about -0.12 of its total potential returns per unit of risk. Settlebank is currently generating about 0.04 per unit of volatility. If you would invest 1,402,000 in Settlebank on December 1, 2024 and sell it today you would earn a total of 24,000 from holding Settlebank or generate 1.71% 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. Settlebank
Performance |
| Timeline |
| Hana Financial 7 |
| Settlebank |
Hana Financial and Settlebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Settlebank
The main advantage of trading using opposite Hana Financial and Settlebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Settlebank 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 Settlebank will offset losses from the drop in Settlebank's long position.| Hana Financial vs. Ananti Inc | Hana Financial vs. SS TECH | Hana Financial vs. Vieworks Co | Hana Financial vs. Shinsung Delta Tech |
| Settlebank vs. SV Investment | Settlebank vs. Atinum Investment Co | Settlebank vs. Aju IB Investment | Settlebank vs. Nh Investment And |
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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