Correlation Between Hanjin Transportation and Korea Alcohol
Can any of the company-specific risk be diversified away by investing in both Hanjin Transportation and Korea Alcohol 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 Hanjin Transportation and Korea Alcohol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanjin Transportation Co and Korea Alcohol Industrial, you can compare the effects of market volatilities on Hanjin Transportation and Korea Alcohol 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 Hanjin Transportation with a short position of Korea Alcohol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanjin Transportation and Korea Alcohol.
Diversification Opportunities for Hanjin Transportation and Korea Alcohol
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanjin and Korea is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hanjin Transportation Co and Korea Alcohol Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Alcohol Industrial and Hanjin Transportation 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 Hanjin Transportation Co are associated (or correlated) with Korea Alcohol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Alcohol Industrial has no effect on the direction of Hanjin Transportation i.e., Hanjin Transportation and Korea Alcohol go up and down completely randomly.
Pair Corralation between Hanjin Transportation and Korea Alcohol
Assuming the 90 days trading horizon Hanjin Transportation Co is expected to generate 0.74 times more return on investment than Korea Alcohol. However, Hanjin Transportation Co is 1.36 times less risky than Korea Alcohol. It trades about 0.0 of its potential returns per unit of risk. Korea Alcohol Industrial is currently generating about 0.0 per unit of risk. If you would invest 2,008,714 in Hanjin Transportation Co on September 24, 2024 and sell it today you would lose (96,714) from holding Hanjin Transportation Co or give up 4.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hanjin Transportation Co vs. Korea Alcohol Industrial
Performance |
Timeline |
Hanjin Transportation |
Korea Alcohol Industrial |
Hanjin Transportation and Korea Alcohol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanjin Transportation and Korea Alcohol
The main advantage of trading using opposite Hanjin Transportation and Korea Alcohol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanjin Transportation position performs unexpectedly, Korea Alcohol 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 Korea Alcohol will offset losses from the drop in Korea Alcohol's long position.Hanjin Transportation vs. AptaBio Therapeutics | Hanjin Transportation vs. Wonbang Tech Co | Hanjin Transportation vs. Busan Industrial Co | Hanjin Transportation vs. Busan Ind |
Korea Alcohol vs. Jinro Distillers Co | Korea Alcohol vs. Hanjin Transportation Co | Korea Alcohol vs. Korea Computer | Korea Alcohol vs. Taegu Broadcasting |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |