Correlation Between Hana Technology and Guyoung Technology
Can any of the company-specific risk be diversified away by investing in both Hana Technology and Guyoung 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 Guyoung 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 Guyoung Technology Co, you can compare the effects of market volatilities on Hana Technology and Guyoung 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 Guyoung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Technology and Guyoung Technology.
Diversification Opportunities for Hana Technology and Guyoung Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hana and Guyoung is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hana Technology Co and Guyoung Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guyoung 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 Guyoung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guyoung Technology has no effect on the direction of Hana Technology i.e., Hana Technology and Guyoung Technology go up and down completely randomly.
Pair Corralation between Hana Technology and Guyoung Technology
Assuming the 90 days trading horizon Hana Technology Co is expected to under-perform the Guyoung Technology. In addition to that, Hana Technology is 1.45 times more volatile than Guyoung Technology Co. It trades about -0.03 of its total potential returns per unit of risk. Guyoung Technology Co is currently generating about 0.0 per unit of volatility. If you would invest 247,396 in Guyoung Technology Co on August 28, 2024 and sell it today you would lose (35,896) from holding Guyoung Technology Co or give up 14.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Technology Co vs. Guyoung Technology Co
Performance |
| Timeline |
| Hana Technology |
| Guyoung Technology |
Hana Technology and Guyoung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Technology and Guyoung Technology
The main advantage of trading using opposite Hana Technology and Guyoung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Technology position performs unexpectedly, Guyoung 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 Guyoung Technology will offset losses from the drop in Guyoung Technology's long position.| Hana Technology vs. Rainbow Robotics | Hana Technology vs. CS BEARING CoLtd | Hana Technology vs. HS Valve Co |
| Guyoung Technology vs. Busan Industrial Co | Guyoung Technology vs. Busan Ind | Guyoung Technology vs. Mirae Asset Daewoo | Guyoung Technology vs. UNISEM 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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