Correlation Between Hanilcmt and Industrial Bank
Can any of the company-specific risk be diversified away by investing in both Hanilcmt and Industrial Bank 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 Hanilcmt and Industrial Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanilcmt Co and Industrial Bank, you can compare the effects of market volatilities on Hanilcmt and Industrial Bank 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 Hanilcmt with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanilcmt and Industrial Bank.
Diversification Opportunities for Hanilcmt and Industrial Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hanilcmt and Industrial is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hanilcmt Co and Industrial Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Hanilcmt 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 Hanilcmt Co are associated (or correlated) with Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Hanilcmt i.e., Hanilcmt and Industrial Bank go up and down completely randomly.
Pair Corralation between Hanilcmt and Industrial Bank
Assuming the 90 days trading horizon Hanilcmt Co is expected to generate 1.45 times more return on investment than Industrial Bank. However, Hanilcmt is 1.45 times more volatile than Industrial Bank. It trades about 0.1 of its potential returns per unit of risk. Industrial Bank is currently generating about 0.02 per unit of risk. If you would invest 1,368,000 in Hanilcmt Co on September 12, 2024 and sell it today you would earn a total of 67,000 from holding Hanilcmt Co or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanilcmt Co vs. Industrial Bank
Performance |
| Timeline |
| Hanilcmt |
| Industrial Bank |
Hanilcmt and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanilcmt and Industrial Bank
The main advantage of trading using opposite Hanilcmt and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanilcmt position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Hanilcmt vs. Solution Advanced Technology | Hanilcmt vs. Korea Shipbuilding Offshore | Hanilcmt vs. Shinhan Financial Group | Hanilcmt vs. Settlebank |
| Industrial Bank vs. Jeong Moon Information | Industrial Bank vs. LG Household Healthcare | Industrial Bank vs. Daishin Information Communications | Industrial Bank vs. CKH Food Health |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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