Correlation Between Sangsangin Investment and Hyundai Home
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Hyundai Home 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 Sangsangin Investment and Hyundai Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Hyundai Home Shopping, you can compare the effects of market volatilities on Sangsangin Investment and Hyundai Home 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 Sangsangin Investment with a short position of Hyundai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Hyundai Home.
Diversification Opportunities for Sangsangin Investment and Hyundai Home
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sangsangin and Hyundai is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Hyundai Home Shopping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Home Shopping and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with Hyundai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Home Shopping has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Hyundai Home go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Hyundai Home
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to under-perform the Hyundai Home. But the stock apears to be less risky and, when comparing its historical volatility, Sangsangin Investment Securities is 1.04 times less risky than Hyundai Home. The stock trades about -0.21 of its potential returns per unit of risk. The Hyundai Home Shopping is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 5,990,000 in Hyundai Home Shopping on September 3, 2024 and sell it today you would lose (1,475,000) from holding Hyundai Home Shopping or give up 24.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Hyundai Home Shopping
Performance |
| Timeline |
| Sangsangin Investment |
| Hyundai Home Shopping |
Sangsangin Investment and Hyundai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Hyundai Home
The main advantage of trading using opposite Sangsangin Investment and Hyundai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Hyundai Home 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 Hyundai Home will offset losses from the drop in Hyundai Home's long position.| Sangsangin Investment vs. Dongjin Semichem Co | Sangsangin Investment vs. AhnLab Inc | Sangsangin Investment vs. Posco ICT | Sangsangin Investment vs. CJ ENM |
| Hyundai Home vs. Nice Information Telecommunication | Hyundai Home vs. Hanmi Semiconductor Co | Hyundai Home vs. Youngsin Metal Industrial | Hyundai Home vs. Daedong Metals 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |