Correlation Between V One and Hana Financial
Can any of the company-specific risk be diversified away by investing in both V One 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 V One and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between V One Tech Co and Hana Financial, you can compare the effects of market volatilities on V One 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 V One with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of V One and Hana Financial.
Diversification Opportunities for V One and Hana Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 251630 and Hana is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding V One 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 V One 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 V One 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 V One i.e., V One and Hana Financial go up and down completely randomly.
Pair Corralation between V One and Hana Financial
Assuming the 90 days trading horizon V One Tech Co is expected to under-perform the Hana Financial. In addition to that, V One is 1.54 times more volatile than Hana Financial. It trades about -0.01 of its total potential returns per unit of risk. Hana Financial is currently generating about 0.04 per unit of volatility. If you would invest 4,316,078 in Hana Financial on October 28, 2024 and sell it today you would earn a total of 1,603,922 from holding Hana Financial or generate 37.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V One Tech Co vs. Hana Financial
Performance |
| Timeline |
| V One Tech |
| Hana Financial |
V One and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V One and Hana Financial
The main advantage of trading using opposite V One and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V One 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.| V One vs. Samsung Electronics Co | V One vs. Samsung Electronics Co | V One vs. LG Energy Solution | V One vs. SK Hynix |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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