Correlation Between V One and Hanwha Life
Can any of the company-specific risk be diversified away by investing in both V One and Hanwha Life 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 Hanwha Life 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 Hanwha Life Insurance, you can compare the effects of market volatilities on V One and Hanwha Life 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 Hanwha Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of V One and Hanwha Life.
Diversification Opportunities for V One and Hanwha Life
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 251630 and Hanwha is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding V One Tech Co and Hanwha Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Life Insurance 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 Hanwha Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Life Insurance has no effect on the direction of V One i.e., V One and Hanwha Life go up and down completely randomly.
Pair Corralation between V One and Hanwha Life
Assuming the 90 days trading horizon V One Tech Co is expected to generate 5.34 times more return on investment than Hanwha Life. However, V One is 5.34 times more volatile than Hanwha Life Insurance. It trades about 0.18 of its potential returns per unit of risk. Hanwha Life Insurance is currently generating about -0.04 per unit of risk. If you would invest 444,500 in V One Tech Co on November 7, 2024 and sell it today you would earn a total of 42,000 from holding V One Tech Co or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
V One Tech Co vs. Hanwha Life Insurance
Performance |
| Timeline |
| V One Tech |
| Hanwha Life Insurance |
V One and Hanwha Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V One and Hanwha Life
The main advantage of trading using opposite V One and Hanwha Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V One position performs unexpectedly, Hanwha Life 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 Hanwha Life will offset losses from the drop in Hanwha Life's long position.| V One vs. Korea Petro Chemical | V One vs. Ilji Technology Co | V One vs. SK Chemicals Co | V One vs. Posco Chemical Co |
| Hanwha Life vs. AptaBio Therapeutics | Hanwha Life vs. Daewoo SBI SPAC | Hanwha Life vs. Dream Security co | Hanwha Life vs. Microfriend |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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