Correlation Between Hana Technology and Korea Shipbuilding
Can any of the company-specific risk be diversified away by investing in both Hana Technology and Korea Shipbuilding 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 Korea Shipbuilding 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 Korea Shipbuilding Offshore, you can compare the effects of market volatilities on Hana Technology and Korea Shipbuilding 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 Korea Shipbuilding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hana Technology and Korea Shipbuilding.
Diversification Opportunities for Hana Technology and Korea Shipbuilding
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hana and Korea is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hana Technology Co and Korea Shipbuilding Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Shipbuilding 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 Korea Shipbuilding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Shipbuilding has no effect on the direction of Hana Technology i.e., Hana Technology and Korea Shipbuilding go up and down completely randomly.
Pair Corralation between Hana Technology and Korea Shipbuilding
Assuming the 90 days trading horizon Hana Technology Co is expected to under-perform the Korea Shipbuilding. In addition to that, Hana Technology is 1.53 times more volatile than Korea Shipbuilding Offshore. It trades about -0.03 of its total potential returns per unit of risk. Korea Shipbuilding Offshore is currently generating about 0.11 per unit of volatility. If you would invest 7,201,070 in Korea Shipbuilding Offshore on December 4, 2024 and sell it today you would earn a total of 16,348,930 from holding Korea Shipbuilding Offshore or generate 227.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Hana Technology Co vs. Korea Shipbuilding Offshore
Performance |
Timeline |
Hana Technology |
Korea Shipbuilding |
Hana Technology and Korea Shipbuilding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hana Technology and Korea Shipbuilding
The main advantage of trading using opposite Hana Technology and Korea Shipbuilding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hana Technology position performs unexpectedly, Korea Shipbuilding 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 Shipbuilding will offset losses from the drop in Korea Shipbuilding's long position.Hana Technology vs. Kukdong Oil Chemicals | Hana Technology vs. Polaris Office Corp | Hana Technology vs. Automobile Pc | Hana Technology vs. Cuckoo Homesys Co |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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