Correlation Between Hana Technology and People Technology
Can any of the company-specific risk be diversified away by investing in both Hana Technology and People 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 People 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 People Technology, you can compare the effects of market volatilities on Hana Technology and People 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 People Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Technology and People Technology.
Diversification Opportunities for Hana Technology and People Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hana and People is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hana Technology Co and People Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on People 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 People Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of People Technology has no effect on the direction of Hana Technology i.e., Hana Technology and People Technology go up and down completely randomly.
Pair Corralation between Hana Technology and People Technology
Assuming the 90 days trading horizon Hana Technology Co is expected to under-perform the People Technology. In addition to that, Hana Technology is 1.09 times more volatile than People Technology. It trades about -0.25 of its total potential returns per unit of risk. People Technology is currently generating about -0.17 per unit of volatility. If you would invest 5,330,000 in People Technology on August 30, 2024 and sell it today you would lose (790,000) from holding People Technology or give up 14.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Technology Co vs. People Technology
Performance |
| Timeline |
| Hana Technology |
| People Technology |
Hana Technology and People Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Technology and People Technology
The main advantage of trading using opposite Hana Technology and People Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Technology position performs unexpectedly, People 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 People Technology will offset losses from the drop in People Technology's long position.| Hana Technology vs. CS BEARING CoLtd | Hana Technology vs. DAEMO Engineering Co | Hana Technology vs. Booster Co |
| People Technology vs. Samsung Electronics Co | People Technology vs. Samsung Electronics Co | People Technology vs. KB Financial Group | People Technology vs. Shinhan Financial Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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