Correlation Between SV Investment and Hana Technology
Can any of the company-specific risk be diversified away by investing in both SV Investment and Hana Technology 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 SV Investment and Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SV Investment and Hana Technology Co, you can compare the effects of market volatilities on SV Investment and Hana Technology 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 SV Investment with a short position of Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SV Investment and Hana Technology.
Diversification Opportunities for SV Investment and Hana Technology
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 289080 and Hana is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding SV Investment and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology and SV Investment 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 SV Investment are associated (or correlated) with Hana Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Technology has no effect on the direction of SV Investment i.e., SV Investment and Hana Technology go up and down completely randomly.
Pair Corralation between SV Investment and Hana Technology
Assuming the 90 days trading horizon SV Investment is expected to under-perform the Hana Technology. But the stock apears to be less risky and, when comparing its historical volatility, SV Investment is 1.87 times less risky than Hana Technology. The stock trades about -0.13 of its potential returns per unit of risk. The Hana Technology Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,000,000 in Hana Technology Co on November 2, 2024 and sell it today you would lose (895,000) from holding Hana Technology Co or give up 29.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SV Investment vs. Hana Technology Co
Performance |
| Timeline |
| SV Investment |
| Hana Technology |
SV Investment and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SV Investment and Hana Technology
The main advantage of trading using opposite SV Investment and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SV Investment position performs unexpectedly, Hana Technology 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 Technology will offset losses from the drop in Hana Technology's long position.| SV Investment vs. Narae Nanotech Corp | SV Investment vs. ADTechnology CoLtd | SV Investment vs. KMH Hitech Co | SV Investment vs. SEOJEON ELECTRIC MACHINERY |
| Hana Technology vs. Kbi Metal Co | Hana Technology vs. Kukil Metal Co | Hana Technology vs. Coloray International Investment | Hana Technology vs. Daol 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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