Correlation Between Hana Technology and Dongil Technology
Can any of the company-specific risk be diversified away by investing in both Hana Technology and Dongil 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 Hana Technology and Dongil Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hana Technology Co and Dongil Technology, you can compare the effects of market volatilities on Hana Technology and Dongil 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 Hana Technology with a short position of Dongil Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Technology and Dongil Technology.
Diversification Opportunities for Hana Technology and Dongil Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hana and Dongil is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hana Technology Co and Dongil Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Technology and Hana Technology 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 Hana Technology Co are associated (or correlated) with Dongil Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Technology has no effect on the direction of Hana Technology i.e., Hana Technology and Dongil Technology go up and down completely randomly.
Pair Corralation between Hana Technology and Dongil Technology
Assuming the 90 days trading horizon Hana Technology Co is expected to under-perform the Dongil Technology. In addition to that, Hana Technology is 2.46 times more volatile than Dongil Technology. It trades about -0.13 of its total potential returns per unit of risk. Dongil Technology is currently generating about -0.03 per unit of volatility. If you would invest 1,200,466 in Dongil Technology on August 26, 2024 and sell it today you would lose (144,466) from holding Dongil Technology or give up 12.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Technology Co vs. Dongil Technology
Performance |
| Timeline |
| Hana Technology |
| Dongil Technology |
Hana Technology and Dongil Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Technology and Dongil Technology
The main advantage of trading using opposite Hana Technology and Dongil Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Technology position performs unexpectedly, Dongil 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 Dongil Technology will offset losses from the drop in Dongil Technology's long position.| Hana Technology vs. Rainbow Robotics | Hana Technology vs. COWINTECH Co | Hana Technology vs. CS BEARING CoLtd | Hana Technology vs. DAEMO Engineering Co |
| Dongil Technology vs. Miwon Chemicals Co | Dongil Technology vs. Shinhan Inverse Silver | Dongil Technology vs. Hana Financial | Dongil Technology vs. BGF Retail Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |