Correlation Between Hana Financial and Samhyun
Can any of the company-specific risk be diversified away by investing in both Hana Financial and Samhyun 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 Samhyun 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 Samhyun, you can compare the effects of market volatilities on Hana Financial and Samhyun 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 Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Financial and Samhyun.
Diversification Opportunities for Hana Financial and Samhyun
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hana and Samhyun is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hana Financial 7 and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun 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 Samhyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun has no effect on the direction of Hana Financial i.e., Hana Financial and Samhyun go up and down completely randomly.
Pair Corralation between Hana Financial and Samhyun
Assuming the 90 days trading horizon Hana Financial is expected to generate 5.06 times less return on investment than Samhyun. But when comparing it to its historical volatility, Hana Financial 7 is 1.88 times less risky than Samhyun. It trades about 0.13 of its potential returns per unit of risk. Samhyun is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 666,000 in Samhyun on October 15, 2024 and sell it today you would earn a total of 375,000 from holding Samhyun or generate 56.31% 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. Samhyun
Performance |
| Timeline |
| Hana Financial 7 |
| Samhyun |
Hana Financial and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Financial and Samhyun
The main advantage of trading using opposite Hana Financial and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Financial position performs unexpectedly, Samhyun 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 Samhyun will offset losses from the drop in Samhyun's long position.The idea behind Hana Financial 7 and Samhyun pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Samhyun vs. NICE Information Service | Samhyun vs. SBI Investment KOREA | Samhyun vs. Jeong Moon Information | Samhyun vs. Jinro Distillers 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |