Correlation Between Hana Technology and Solution Advanced
Can any of the company-specific risk be diversified away by investing in both Hana Technology and Solution Advanced 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 Solution Advanced 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 Solution Advanced Technology, you can compare the effects of market volatilities on Hana Technology and Solution Advanced 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 Solution Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Technology and Solution Advanced.
Diversification Opportunities for Hana Technology and Solution Advanced
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Solution is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hana Technology Co and Solution Advanced Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solution Advanced 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 Solution Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solution Advanced has no effect on the direction of Hana Technology i.e., Hana Technology and Solution Advanced go up and down completely randomly.
Pair Corralation between Hana Technology and Solution Advanced
Assuming the 90 days trading horizon Hana Technology Co is expected to generate 2.18 times more return on investment than Solution Advanced. However, Hana Technology is 2.18 times more volatile than Solution Advanced Technology. It trades about 0.25 of its potential returns per unit of risk. Solution Advanced Technology is currently generating about 0.06 per unit of risk. If you would invest 1,826,000 in Hana Technology Co on October 23, 2024 and sell it today you would earn a total of 494,000 from holding Hana Technology Co or generate 27.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hana Technology Co vs. Solution Advanced Technology
Performance |
| Timeline |
| Hana Technology |
| Solution Advanced |
Hana Technology and Solution Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hana Technology and Solution Advanced
The main advantage of trading using opposite Hana Technology and Solution Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Technology position performs unexpectedly, Solution Advanced 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 Solution Advanced will offset losses from the drop in Solution Advanced's long position.| Hana Technology vs. Inzi Display CoLtd | Hana Technology vs. LG Display Co | Hana Technology vs. Lotte Chilsung Beverage | Hana Technology vs. Nable Communications |
| Solution Advanced vs. TJ media Co | Solution Advanced vs. DC Media Co | Solution Advanced vs. SS TECH | Solution Advanced vs. PNC Technologies 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |