Correlation Between DONGKUK COATED and Hana Financial
Can any of the company-specific risk be diversified away by investing in both DONGKUK COATED and Hana Financial 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 DONGKUK COATED and Hana Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and Hana Financial, you can compare the effects of market volatilities on DONGKUK COATED and Hana Financial 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 DONGKUK COATED with a short position of Hana Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK COATED and Hana Financial.
Diversification Opportunities for DONGKUK COATED and Hana Financial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DONGKUK and Hana is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and Hana Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hana Financial and DONGKUK COATED 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 DONGKUK TED METAL are associated (or correlated) with Hana Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hana Financial has no effect on the direction of DONGKUK COATED i.e., DONGKUK COATED and Hana Financial go up and down completely randomly.
Pair Corralation between DONGKUK COATED and Hana Financial
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.74 times more return on investment than Hana Financial. However, DONGKUK TED METAL is 1.34 times less risky than Hana Financial. It trades about 0.0 of its potential returns per unit of risk. Hana Financial is currently generating about -0.09 per unit of risk. If you would invest 614,000 in DONGKUK TED METAL on September 25, 2024 and sell it today you would lose (4,000) from holding DONGKUK TED METAL or give up 0.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DONGKUK TED METAL vs. Hana Financial
Performance |
Timeline |
DONGKUK TED METAL |
Hana Financial |
DONGKUK COATED and Hana Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DONGKUK COATED and Hana Financial
The main advantage of trading using opposite DONGKUK COATED and Hana Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK COATED position performs unexpectedly, Hana Financial 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 Hana Financial will offset losses from the drop in Hana Financial's long position.DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. Samsung Electronics Co | DONGKUK COATED vs. LG Energy Solution | DONGKUK COATED vs. SK Hynix |
Hana Financial vs. KB Financial Group | Hana Financial vs. Shinhan Financial Group | Hana Financial vs. Hyundai Motor | Hana Financial vs. Hyundai Motor 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |