Correlation Between Moadata and Hana Financial
Can any of the company-specific risk be diversified away by investing in both Moadata 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 Moadata and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moadata Co and Hana Financial, you can compare the effects of market volatilities on Moadata 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 Moadata with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moadata and Hana Financial.
Diversification Opportunities for Moadata and Hana Financial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Moadata and Hana is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Moadata Co and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial and Moadata 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 Moadata 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 Moadata i.e., Moadata and Hana Financial go up and down completely randomly.
Pair Corralation between Moadata and Hana Financial
Assuming the 90 days trading horizon Moadata Co is expected to generate 1.71 times more return on investment than Hana Financial. However, Moadata is 1.71 times more volatile than Hana Financial. It trades about -0.02 of its potential returns per unit of risk. Hana Financial is currently generating about -0.05 per unit of risk. If you would invest 153,200 in Moadata Co on October 14, 2024 and sell it today you would lose (14,100) from holding Moadata Co or give up 9.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moadata Co vs. Hana Financial
Performance |
| Timeline |
| Moadata |
| Hana Financial |
Moadata and Hana Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moadata and Hana Financial
The main advantage of trading using opposite Moadata and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moadata 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.| Moadata vs. MediaZen | Moadata vs. Samyoung Electronics Co | Moadata vs. SungMoon Electronics Co | Moadata vs. Shinil Electronics Co |
| Hana Financial vs. Moadata Co | Hana Financial vs. Lotte Data Communication | Hana Financial vs. Automobile Pc | Hana Financial vs. Sangsangin Investment Securities |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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