Correlation Between PH Tech and Hana Financial
Can any of the company-specific risk be diversified away by investing in both PH Tech and Hana Financial 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 PH Tech and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and Hana Financial, you can compare the effects of market volatilities on PH Tech and Hana Financial 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 PH Tech with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Hana Financial.
Diversification Opportunities for PH Tech and Hana Financial
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between 239890 and Hana is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial and PH Tech 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 PH Tech Co are associated (or correlated) with Hana Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Financial has no effect on the direction of PH Tech i.e., PH Tech and Hana Financial go up and down completely randomly.
Pair Corralation between PH Tech and Hana Financial
Assuming the 90 days trading horizon PH Tech Co is expected to generate 2.37 times more return on investment than Hana Financial. However, PH Tech is 2.37 times more volatile than Hana Financial. It trades about 0.19 of its potential returns per unit of risk. Hana Financial is currently generating about -0.03 per unit of risk. If you would invest 697,000 in PH Tech Co on August 30, 2024 and sell it today you would earn a total of 127,000 from holding PH Tech Co or generate 18.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Hana Financial
Performance |
| Timeline |
| PH Tech |
| Hana Financial |
PH Tech and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Hana Financial
The main advantage of trading using opposite PH Tech and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, Hana Financial 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 Hana Financial will offset losses from the drop in Hana Financial's long position.The idea behind PH Tech Co and Hana Financial 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.| Hana Financial vs. Cube Entertainment | Hana Financial vs. Dreamus Company | Hana Financial vs. LG Energy Solution | Hana Financial vs. Dongwon System |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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