Correlation Between CS BEARING and Hana Technology
Can any of the company-specific risk be diversified away by investing in both CS BEARING 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 CS BEARING and Hana Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CS BEARING CoLtd and Hana Technology Co, you can compare the effects of market volatilities on CS BEARING 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 CS BEARING with a short position of Hana Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CS BEARING and Hana Technology.
Diversification Opportunities for CS BEARING and Hana Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 297090 and Hana is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CS BEARING CoLtd and Hana Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Technology and CS BEARING 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 CS BEARING CoLtd 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 CS BEARING i.e., CS BEARING and Hana Technology go up and down completely randomly.
Pair Corralation between CS BEARING and Hana Technology
Assuming the 90 days trading horizon CS BEARING CoLtd is expected to under-perform the Hana Technology. But the stock apears to be less risky and, when comparing its historical volatility, CS BEARING CoLtd is 1.28 times less risky than Hana Technology. The stock trades about -0.38 of its potential returns per unit of risk. The Hana Technology Co is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 2,730,000 in Hana Technology Co on August 25, 2024 and sell it today you would lose (575,000) from holding Hana Technology Co or give up 21.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CS BEARING CoLtd vs. Hana Technology Co
Performance |
| Timeline |
| CS BEARING CoLtd |
| Hana Technology |
CS BEARING and Hana Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CS BEARING and Hana Technology
The main advantage of trading using opposite CS BEARING and Hana Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CS BEARING 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.| CS BEARING vs. Hanwha InvestmentSecurities Co | CS BEARING vs. FOODWELL Co | CS BEARING vs. Stic Investments | CS BEARING vs. Lindeman Asia Investment |
| Hana Technology vs. Hwangkum Steel Technology | Hana Technology vs. A Tech Solution Co | Hana Technology vs. JYP Entertainment Corp | Hana Technology vs. SS TECH |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |